Trillion dollar move from Fed

THe US Federal Reserve has announced it will pump trillions of dollars into the financial system in its latest bid to stave off a coronavirus slowdown.

The central bank stepped in to support financial markets for the third time this week, saying its move to inject more than $1.5 trillion of temporary liquidity was designed to prevent ‘highly unusual disruptions’.

much of the measures will focus on the short-term funding markets that banks use to operate.

The New York Fed said yesterday it would offer a least $500bn of three- month loans beginning immediately, and another $500bn of three-month loans today. It will also offer a third $500bn tranche of one-month loans today along with other stimulus measures.

In a statement, the New York Fed said: ‘These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak.’

It comes after the Fed cut interest rates by half a percentage point last week to a range of 1pc to 1.25pc. other central banks including the Bank of england, the Bank of Japan and the Bank of Canada have followed suit.