In Fresh Virus Support, Fed to Buy Junk Bonds and Lend to States

As fresh evidence of the economic toll from the coronavirus pandemic flood in, the Federal Reserve unleashed another round of emergency measures, including a pledge to provide support to risky corners of financial markets that have been some of the hardest hit.

The Fed said yesterday it will invest up to $2.3 trillion in loans to aid small and mid-sized businesses and state and local governments as well as fund the purchases of some types of high-yield bonds, collateralized loan obligations and commercial mortgage-backed securities.

The money comes on top of the massive stimulus that the Fed had already announced ...