The Federal Reserve is using two emergency lending programs to help keep credit flowing. The programs haven't been deployed since the 2008 financial crisis.
The Fed announcement on Tuesday is designed to dull the impact of the coronavirus pandemic by ensuring that banks and large companies can access the cash they need. The move could make more money available for lending to businesses and households.
These moves in the so-called commercial paper market are designed to counter Wall Street's growing belief that the economy is entering a recession. That gloomy outlook leads financial institutions to pull back on lending, pushing up short-term interest rates.
The moves to quell the financial markets come as the coronavirus has infected over 6,500 people in the U.S. as of Wednesday, according to Johns Hopkins University. Millions of Americans are staying in their homes, reducing spending.
On Sunday, the Fed cut interest rates to nearly zero.
Contains footage from CNN.