New York Federal Reserve System injects $1.5 trillion into markets amid coronavirus chaos for stocks

The coronavirus is now characterized as a pandemic as the WHO director general announces more than 100,000 cases in over 100 countries. USA TODAY

New York Federal Reserve injects $1.5 trillion into markets amid coronavirus chaos for stocks

The Federal Reserve System Bank of latest York on Thursday took steps to inject quite $1.5 trillion into the markets during a bid to calm investors who are scared of the economic impact of the coronavirus.

Stocks briefly pared their steep losses Thursday afternoon. But the extremely volatile market activity continued: The Dow Jones industrial average and S&P 500 index were down 7.8% and 7.3%, respectively, around 1:40 p.m.

With market chaos swirling, the ny Fed's Open Market Trading Desk revealed plans to flood the short-term funding markets with capital.

"These changes are being made to deal with highly unusual disruptions in Treasury financing markets related to the coronavirus outbreak," the Fed said during a statement.

The initial step involves a suggestion to get $500 billion during a so-called "repo operation" beginning today. A repo operation is an attempt to stay interest rates within the Fed's preferred range.

Coronavirus chaos:Stocks fluctuate wildly amid lack of 'concerted global policy response'

That $500 billion purchase are going to be followed by two additional $500 billion rounds additionally to other ongoing repo operations.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.