US Fed takes aggressive action as EU debates whether to use crisis fund

Countries battle against coronavirus fallout

The US Federal Reserve has redeployed a measure used in the last financial crisis to shore up the funding markets, which are in turmoil due to the coronavirus pandemic.

On Tuesday night (17 March) the Fed said it would allow approved dealers in government debt - including the largest banks - to borrow cash against some stocks, municipal debt, and higher-rated corporate bonds in a bid to boost liquidity, the Financial Times reports. The Fed said in a statement its primary dealer lending facility would "allow primary dealers to support smooth market functioning and facilitate the availability of credit to businesses and households". Starting on 20 March, the new facility will be available for at least six months. It will offer funding with maturities o...