U.S. Fed decides to supply more than 150 trillion yen to financial markets Effect is uncertain March 13 7:41
As the financial market turmoil continues as a result of the spread of the new coronavirus, the Federal Reserve Board, the central bank of the United States, has reported $ 1.5 trillion in short-term money markets in two days and ¥ 150 trillion in Japanese yen. Decided to provide more funding. However, market turmoil has not subsided, and it is uncertain how far it will be effective.
According to the Fed's announcement, as a new funding measure, it will expand the range of purchase of government bonds exceeding $ 60 billion per month and Japanese yen exceeding 6 trillion yen, and two days in the money market where financial institutions exchange funds It will provide more than 1.5 trillion dollars in funding and 150 trillion yen in Japanese yen.
The Federal Reserve Bank of New York has stated that it is addressing the extraordinary confusion caused by the spread of the new coronavirus.
Following the announcement, the New York stock market on the 12th showed a temporary recovery in the Dow Jones stock price, but the closing price decline has reached its largest ever, and it is unclear how effective the measures will be.
The Fed cut its urgent interest rate on the 3rd of this month, but the market is seeing even greater cuts and the focus is on how far the Fed will go into its regular meeting next week. .