March 12, the largest US stock indices fell by more than 7%. The Federal Reserve Bank of New York announced plans to spend $ 1.5 trillion to resolve the situation.
The Federal Reserve Bank of New York announced plans to spend $ 1.5 trillion on countering the stock market panic caused by coronavirus. This is stated in the official announcement of the bank, published on March 12.
The decision was made in connection with a record drop in stocks on Thursday, March 12, when the largest US stock indices fell by more than 7%.
“These changes are introduced to eliminate very unusual disruptions in the treasury financing markets associated with the outbreak of coronavirus,” the report said.
The collapse in the US markets was triggered by the ban of US President Donald Trump on air travel with 26 European countries. The restrictions also affected most foreigners who visited the Schengen countries within 14 days before traveling to America. Trump explained his decision by saying that he wants to curb the spread of the virus in the United States. The ban entered into force at midnight on March 13th. Prior to this, Trump banned entry for foreigners who visited China and Iran.
An outbreak of COVID-19 coronavirus infection began in December 2019 in Wuhan, China. On March 11, 2020, WHO announced the spread of the SARS-CoV-2 coronavirus pandemic.
According to the American Johns Hopkins Institute, by March 13, the total number of infected reached 135 thousand, the number of victims was close to 5 thousand people.