The US Fed has resorted to a number of measures to support the economy amid the pandemic, including backstopping credit for households, small businesses, and major employers. However, it warned of “severe disruptions” to the economy as a result of the COVID-19 outbreak.
US stocks have taken a dive as markets opened on Monday despite the efforts by the Federal Reserve to boost the economy as the coronavirus continues to spread in the country.
The Dow Jones Industrial Average sank to 19,028.36, whereas the S&P 500 plummeted to 2,290.71. The Nasdaq Composite, in turn, went down to 6,847.28.
The Federal Reserve said on Monday it will use all tools at its disposal, including buying as many bonds as needed, to support the US economy and help to maximise job creation and ensure price stability amid the coronavirus crisis.
The Fed has already cut interest rates twice this month by a total of 1.5 percentage points to bring them to between zero and 0.25 percent.
The market fluctuation also comes as the US Senate failed to adopt an economic stimulus bill, as it did not get sufficient support in a procedural vote, sending the financial markets into a downward spiral on Sunday.
The bill was blocked by the Democrats, who complained that it lacked provisions for health care and unemployment aid to citizens.
The number of confirmed cases of novel coronavirus (COVID-19) infection in the United States has increased to 35,225, while the death toll reached 473.
Of the total number of cases, New York State tops the list with almost 17,000 people having contracted the virus.