US Fed announces asset purchases with no limit to support markets

WASHINGTON - The US Federal Reserve (Fed) announced on Monday that it will purchase US treasuries and agency mortgage-backed securities with no limit to help markets function more efficiently amid coronavirus uncertainty.

"The Federal Reserve will continue to purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions," the Fed said in a statement before the stock market opened, putting no numerical cap on its asset purchase program.

Earlier this month, the Fed pledged to buy at least 500 billion US dollars in US treasuries and at least 200 billion dollars in agency mortgage-backed securities over the coming months.

The Fed's latest move signaled that the central bank is prepared to act as much as necessary to help the US economy weather the coronavirus outbreak.