USA

NY Fed vows to pump in $1.5 trillion to fight coronavirus-linked 'highly unusual disruptions' on Wall Street

The NY Fed announced plans Thursday to inject vast amounts of money into the financial system, totaling at least $1.5 trillion. This accelerates weeklong efforts by the NY Fed aimed at easing fears that companies will lose access to capital.

The dramatic moves instantly improved the mood on Wall Street, lifting US stocks off their lows during an historic selloff. Markets are still are track for their worst week since 2008.

"This is to make sure banks don't have any funding issues," said Jeffrey Kleintop, chief global market strategist at Charles Schwab. "We've got enough to deal with, with a health crisis. We don't want companies to feel like banks will pull back on their lines of credit and run into liquidity problems."

The NY Fed said it would offer $500 billion in a three-month repo operation Thursday afternoon -- and then will do the same thing the next day. Moreover, the Fed said it will offer a $500 billion one-month repo operation Friday and take additional steps as well.

Officials said in a statement that these capital injections are being made to "address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak."

The Fed has repeatedly ramped up its cash injections this week in an effort to keep funding markets operating smoothly despite the coronavirus fears. If those markets shut down, like they did in 2008, banks would stop lending to each other and cut off capital provided to Corporate America.

In other words, a health crisis would turn into a credit one.

"The idea is to make sure banks maintain capital available for businesses. This isn't a direct injection into those businesses but as close as the Fed can get," said Kleintop.

Football news:

Manchester United and Leeds are Interested in 30-year-old defender Torino Nkulu
The only time he got mad at me was when I put the kettle whistle on the tailpipe of his car. English coach Glen Roeder has died
Mark Clattenburg: I am amazed that Manchester United were not allowed to kick a penalty for an obvious play by the hand of Hudson-Odoi. How not appointed after VAR-a mystery
Lucas Vazquez asks to increase his salary by 15%, Real Madrid wants to reduce it by 10%
Arteta can lead Barcelona. He is Laporte's candidate
Ismailov asked Nurmagomedov to support Anzhi. Habib replied
Boyarintsev about the time in Nosta: The metallurgical plant was puffing at the top of its lungs. The sediment on the field fell out, sometimes