The Federal Reserve has stepped into financial markets for the second day in a row and the third time this week, this time dramatically ramping up asset purchases amid the turmoil created by the coronavirus.
"These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak," the New York Fed said in a statement released early Thursday afternoon amid a washout on Wall Street that was heading toward the worst day since 1987.One part of the announcement saw the Fed widen the scale for its $60 billion worth of money Treasury purchases, which to now had been confined to short-term T-bills.
Under the new regime, the Fed will extend its purchases "across a range of maturities" to include bills, notes, Treasury Inflation-Protected Securities and other instruments. The central bank will begin purchasing coupon-bearing securities, something market participants have been clamoring for since late 2019.The second part of the new operations will see the New York Fed desk offer $500 billion in a three-month repo operation and a one-month operation.
In addition, the Fed will continue to offer at least $175 billion in overnight repos and $45 billion in two-week operations. The extraordinary moves come amid extreme market turmoil created by uncertainty over the coronavirus spread. Government bond yields earlier this week cascaded to record lows amid reports of liquidity issues in the market and fears of a global recession.for exclusive insights and analysis, and live business day programming from around the world.
lamboluxuryy_
And it is going to do NOTHING to help the markets. None of this is until the virus is actually contained. Fucking idiots. It’s like trying to kill a bear with an airsoft gun.
Ofcourse, bail out banks! What about hard working Americans supporting their families during this economic shutdown?
Eat your heart out Milton Friedman
Fck you and your bailout
Yea, that did a lot.
Nothing is going to help this situation until they start testing people and reporting the results. Fear is up and getting worse day by day. The CDC needs to compile the information from each state and report it.
Russin roulette
I thought they said the banks were fine now they are getting bailouts?!?!
😳🤯🚀💵
Good move!
That will only cause more panic. Investors will see this as act of desperation because it is The ONLY thing that might help is passing the emergency plan Democrats already passed in the House to start addressing the crisis Instead MoscowMitch is sending the senate on vacation
How are we going to pay for that? So why can't we get M4A ?
Hasn’t history taught us anything about bank bailouts?
In other words, the recession is here and we don't want it yet.
If this attempt fails, & I feel it will within a cpl days, we’re doomed into a prolonged recession, several months to yrs.
nsitharaman RBI aap kuch to kro _Awaaz ZeeBusiness
Well, it's not nothing🐷
Banks bailed out yet again
cc scottmelker crypto_birb
why not give a billion to each person in America. it would be cheaper.
Markets over lives, once again. Nice priorities, Republicans.
and even more worthless dollars in the pockets
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