NEWS: FED TO INJECT $1,500 BILLION TO OFFSET IMPACT OF CORONAVIRUS ON SHORT-TERM MARKETS
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The Federal Reserve announced Thursday that it would inject $1.5 trillion into the markets in the near term to offset the economic impact of the coronavirus. This injection of liquidity follows instructions from Federal Reserve Chairman Jerome Powell.
While the stock market was particularly robust last year, with the S&P 500 last year, with the S&P 500 offering total returns in excess of 25%, stocks experienced a major correction that erased a 25%, stocks experienced a major correction that erased a significant portion of the a significant portion of the gains. Indeed, the S&P 500 fell 11.5% in the last week of the last week of February, the largest one-week decline in equity markets since the in a single week since the 2008 financial crisis.
"These changes are being made in response to the very unusual disruptions in Treasury funding markets associated with to the coronavirus outbreak," the New York Fed said in a statement. "The terms of the transactions will be adjusted as necessary to support the efficient functioning of the Treasury market and the effective and efficient implementation of effective and efficient implementation of policies."
President Donald Trump has pushed the Fed to lower interest rates interest rates to combat the financial disruption caused by the the epidemic.
However, he also criticized Powell, who he nonetheless appointed to the position in 2017. "Our pathetic, slow-moving Federal Reserve, led by Jay Powell, who raised rates too fast and lowered them too late, should bring our rate back in line with our competitors," Donald Trump wrote on Twitter on Tuesday.
Wall Street is struggling as stocks fell on coronavirus fears, a lack of supply following China's quarantine efforts and an oil price war between Russia and OPEC countries.
We will keep you informed of developments and our particular feelings, if any, about the Florida real estate market.
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