Fed to inject trillions into market to ease strain
Fed is taking drastic steps to inject more liquidity into the banking system as markets begin to show signs of stress
12 March 2020 - 20:03
New York — The Federal Reserve took aggressive steps to ease what it called “temporary disruptions” in Treasuries, flooding the market with liquidity and widening its purchases of US government securities in a measure that recalls the quantitative easing it used during the financial crisis.
The Federal Reserve Bank of New York said in a statement that the “changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak” and had been done at the direction of Fed chair Jerome Powell in consultation with the Federal Open Market Committee...
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