Coronavirus fears lead New York Fed to inject $1.5T into markets

How to protect yourself when eating out at restaurants


The Federal Reserve Bank of New York on Thursday took steps to inject more than $1.5 trillion into the markets in a bid to calm investors who are fearful of the economic impact of the coronavirus. 

Stocks briefly pared their steep losses Thursday afternoon. But the extremely volatile market activity continued: The Dow Jones industrial average and S&P 500 index were down 7.8% and 7.3%, respectively, around 1:40 p.m.

With market chaos swirling, the New York Fed’s Open Market Trading Desk revealed plans to flood the short-term funding markets with capital.

“These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak,” the Fed said in a statement.

The initial step involves an offer to purchase $500 billion in a so-called “repo operation” beginning today. A repo operation is an effort to keep interest rates in the Fed’s preferred range.

Coronavirus chaos:Stocks fluctuate wildly amid lack of ‘concerted global policy response’

Worried about the stock market plunge?:Here are 3 ways to protect your money

The facade of a Federal Reserve building.

That $500 billion purchase will be followed by two additional $500 billion rounds in addition to other ongoing repo operations.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.


Source link

By Javier Manning

Javier has been in the field of content writing for almost 8 Years as he hails from the Biotechnology background. The edifying articles portray her craving towards language. His keen hobby of reading technological innovations related books or articles has sown the seed of being a well-versed editor with the current scenario of numerous industry verticals. He is one of the valuable assets to this publication. The Industry News Press has awarded him with a senior editors post based on his skillful performance to date.