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Central banks deploy record sums to break financial logjam, but may need more

March 23, 2020 / Tommy Wilkes, Lawrence Delevingne
SHARESHARESHARE

Central banks have offered trillions of dollars of support to markets in recent days to keep them from freezing up, as investors worried about the economic damage from the coronavirus and made a chaotic dash for the exits. While the intervention helped bring back some order to markets, policymakers may need to do more. Investors, economists and bank strategists said they expect policymakers will have to step in with more support in the coming days to prop up both markets and the real economy - companies losing customers and workers thrown out of jobs. On Monday, the U.S. Federal Reserve said it would begin backstopping an unprecedented range of credit for households, small businesses and major employers to combat “the severe disruptions” to the economy from the virus. It was the central bank’s latest step to try and ease the damage. There is a limit for now to how effective authorities can be, however, some said. Before investors calm down, these observers said, they ...