New York Fed pledges to offer $1 trillion a day in overnight repo loans

(Reuters) - The New York Federal Reserve said it will make up to $1 trillion a day available for loans in the repo market for the remainder of this week.

The Fed said it will offer up to $500 billion in overnight repo loans each morning and an additional $500 billion in overnight repo loans each afternoon.

This is the latest effort from the central bank to keep markets operating smoothly despite volatility related to the coronavirus pandemic. Earlier Tuesday, the Fed said it would reinstate a funding facility used during the 2008 financial crisis to get credit directly to businesses and households.

On Sunday, the U.S. central bank slashed rates to near zero and announced it would purchase $700 billion in Treasuries and mortgage-backed securities.

Reporting by Jonnelle Marte; Editing by Andrea Ricci