Gov stimulus package info
The U.S. Federal Reserve has taken two significant measures to provide monetary stimulus:
On March 3, 2020, it made an unscheduled cut to the fed funds rate. It slashed rates by 0.5%, double the amount of its recent moves, and the largest cut since the 2008 financial crisis.4
On March 12, the Fed massively expanded reverse repo operations, adding $1.5 trillion of liquidity to the banking system5 . This means that the Fed extended the amount of short term loans to banks to keep money markets (markets for very short term loans) stable and allow banks to have more cash on hand.
On March 15, the Federal Reserve cut interest rates by a full percentage point down to a range of 0.00% to 0.25%. This dropped the fed funds rate to the level it was before the rate increases starting in 2015. In addition, the Federal Reserve restarted quantitative easing with the purchase of $500 billion in treasurys and $200 billion in mortgage-backed securities.6
On March 16, the Federal Reserve increased reverse repo operations by another $500 billion.