Fed to Inject $1.5 Trillion in Short-Term Funding Markets The remarkable decision by the New York Fed was announced on Thursday.
NY Fed, via 'The Wall Street Journal' Short-term lending markets are used by banks so that they can lend to each other.
The Fed will also purchase $60 billion in Treasury bonds in order to stabilize that market as well.
Such actions by the central bank have not occurred since the 2008 financial crisis.
The announcement caused a brief rally on Wall Street, which experienced its second circuit breaker shut down of the week on Thursday.
The bounce back was short lived.
The Dow was down seven percent in late afternoon trading.