Moves are reminiscent of the Fed’s quantitative easing program during 2008 financial crisis. FMTNews
NEW YORK: The Federal Reserve offered a huge injection of liquidity to the Treasury market Thursday to counter signs of market dysfunction as investors panic over the spreading coronavirus.
The dramatic expansion comes amid widespread financial-market turmoil, which led to a seizing-up of the Treasury market Wednesday. “This is really brought on by what I’m guessing were a flood of calls from the street in the last few days about how badly Treasury markets were functioning,” said Blake Gwinn, a strategist at NatWest Markets in Stamford, Connecticut.The S&P 500 ended the day down a staggering 9.5% in its worst day since Black Monday more than three decades ago.
Joseph Abate, a strategist at Barclays in New York, said in a note to clients after the announcement that the “massive injection of liquidity” would help to restore confidence in funding markets. Still, because the moves were intended to address market functioning and not to provide stimulus to an economy facing down the potentially-severe impact of the outbreak, investors ended up clamouring for more Wednesday.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
People fed up with delay in power transition, says Perak PKR chiefIPOH: The people are frustrated by the delay in power transition in the Perak state government with the listing of three nominees for the Mentri Besar's post, says Farhash Wafa Salvador Rizal Mubarak.
Read more »
Beijing sacrifices bank profits in campaign to save virus-hit economyLenders now have to concede their ‘interest' after required to help combat the outbreak financially. FMTNews China Economy Bank
Read more »
US did not coordinate, notify about travel ban, says EU diplomatThe suspension could complicate already strained trade ties between Brussels and Washington. FMTNews US Brussel Washington
Read more »
SoftBank's Son backtracks on free virus tests proposal on TwitterJapanese billionaire's idea slammed for trying to overwhelm Japan's healthcare system. FMTNews SoftBanks Japan Virus
Read more »
US Capitol closed to the public as virus hits CongressA senate staff member has been tested positive for the virus. FMTNews USCapitol
Read more »
Ringgit opens lower amid stronger dollarInvestors preference for safe-haven currencies during virus outbreak hits local note. FMTNews Ringgit
Read more »