UPDATE - Fed announces aggressive measures amid COVID-19 fears

UPDATES WITH MORE DETAILS

By Tuba Sahin

ANKARA (AA) - The U.S. Federal Reserve on Monday unveiled a set of aggressive measures to cushion the economic impact of the global coronavirus pandemic, indicating new quantitative easing measures.

The Fed announced it would purchase required amounts of Treasury and agency mortgage-backed securities to support smooth market functioning and monetary policy.

"While great uncertainty remains, it has become clear that our economy will face severe disruptions," it underlined in a statement.

The move, along with previous measures, is expected to provide support to a wide range of markets and institutions, thereby supporting the flow of credit in the economy.

The Fed added that it would continue to use all tools to support the flow of credit to households and businesses.

The Fed also called on the public and private sectors to make aggressive efforts to curb job and income losses and promote a swift recovery once virus-based disruptions abate.

Citing previously announced purchase of at least $500 billion of Treasury securities and at least $200 billion of mortgage-backed securities, the Fed said it will include purchases of agency commercial mortgage-backed securities in its agency mortgage-backed security purchases.

It is backing the flow of credit to employers, consumers, and businesses by establishing new programs that, taken together, will provide up to $300 billion in new financing, it said.

The Treasury Department will provide $30 billion in equity to these facilities, the Fed added.

Coronavirus, officially known as COVID-19, first emerged in Wuhan, China last December and has spread to at least 167 countries and territories.

There are over 350,500 confirmed cases worldwide, with a death toll surpassing 15,300, while more than 100,000 have recovered, according to data compiled by the U.S.-based Johns Hopkins University.