The Federal Reserve on Monday announced aggressive new emergency measures to support the economy and ensure that credit flows to households and businesses as the country faces the prospect of a deep downturn from the coronavirus pandemic.
The central bank is committing to buying as many U.S. government bonds and mortgage-backed securities as needed "to support smooth market functioning."
The announcement comes after Congress failed to reach agreement Sunday night on a massive stimulus package to provide direct support to consumers and small businesses, as well as to set aside funds to bail out larger companies. The stock market seemed poised to plunge when it opened Monday in reaction to the gridlock in Washington, but futures pared their losses after the central bank's move.
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