Another Move From Fed

Another Move From Fed

The Fed announced that it will purchase new assets today. The Central Bank stated that the coronavirus has created a new package of measures, emphasizing that it affects all markets negatively on the US economy and the global economy. The Fed will purchase Treasury bonds and government agencies' mortgage-backed bonds in the required amount, and will also buy commercial mortgage-backed securities from government departments, in order to perfect and market the market. With the latest decision, this week, it will receive $ 375 billion of Treasury paper in a total of $ 75 billion each day and $ 250 billion of mortgage-backed securities each day for $ 50 billion (for the week of March 23-27). The details of the additional package are as follows; The Federal Open Market Committee (FOMC) will purchase the required amount of Treasury securities and agency mortgage-backed securities to support the smooth functioning of the market and the efficient transmission of monetary policy to the wider financial conditions and economy. FOMC previously announced that it will purchase at least $ 500 billion of Treasury securities and at least $ 200 billion of mortgage-backed securities. In addition, FOMC will include agency commercial mortgage-backed securities purchases in agency mortgage-backed securities purchases. Following the Fed's announcement of the new measure package, US futures wiped their losses during the day, and the US Dollar Index, approaching 103.0, fell to 101.70. The dollar, which started the day with rising, erased most of its earnings against currencies, while the USD / TRY rate fell from 6.6150 to 6.5730. Gold increased to $ 1,524 after the Fed decision, and gram gold increased to 322 TL with the move on the ounce. BİST 100, which experienced a 3% loss during the day, went over the positive zone by over 86 thousand points in the last hour.