The US central bank announced on Thursday a massive increase to its cash injections into American financial markets to quell the growing uncertainty caused by the coronavirus pandemic.
The New York Fed, which has ramped up short-term funding to markets in recent days, said it will offer USD 500 billion in three-month funds called repurchase agreements or "repos" on Thursday and Friday, and $500 billion in one-month repos on Friday.
Over the coming month, it will provide $500 billion a week of one- and three-month repos.
That is on top of the at least USD 175 billion daily in overnight funding, and twice-weekly offers of at least USD 45 billion in two-week repos.
"These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak," the New York Fed said in a statement.
The bank said operations "will be adjusted as needed to foster smooth Treasury market functioning."
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