The Federal Reserve on Thursday rolled out a massive 2.3 trillion U.S. dollar plan to stabilize the U.S. economy amid the coronavirus pandemic.
The Fed said in a statement that the move is aimed at keeping markets functioning and supporting the economy, which has been hit hard by the rapid spread of the coronavirus.
The move also came after Washington reported that 6.6 million new jobless claims were filed just last week.
The Fed's measures include major business lending programs as well as other market intervention initiatives, such as plans to buy corporate bonds and commercial mortgage-backed securities.
Fed Chairman Jerome Powell stressed the role of the central bank is to provide as much relief and stability as possible during such dark times.
"We are deploying these lending powers to an unprecedented extent, enabled in large part by the financial backing from the Congress and the Treasury. We will continue to use these powers forcefully, proactively and aggressively until we are confident that we are on solidly on the road to recovery."
Speaking in a webcast from the Brookings Institution, he also explained that the U.S. economy will rebound as soon as the virus is fully under control.
"When the virus does run its course and it is safe to go back to work, and safe for businesses to open, then we expect there to be a fairly quick rebound as people do go back to work and start resuming normal levels of economic activity. I think most people expect that to happen in the second half of this year, after the second quarter which of course ends on June 30."
Nevertheless, he also hinted that economic growth for the second quarter would be very weak with a high level of unemployment.
Meanwhile, the IMF chief said Thursday that the COVID-19 pandemic will turn global economic growth "sharply negative" this year.
Describing the situation as the worst economic crisis the world faces since the Great Depression of the 1930s, Kristalina Georgieva also forecast that the world will only see a partial recovery in 2021.
Kim Hyo-sun, Arirang News.