The New York Federal Reserve is taking extraordinary steps aimed at calming panicky financial markets.
The NY Fed just announced it will 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.
The dramatic moves sent US stocks surging off their worst levels of the day. At one point, the Dow was on track for its worst day since 1987. More recently, the Dow was only down 900 points, or 4%.
The NY Fed said 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 markets operating smoothly despite the coronavirus fears.