Fed Steps in Once Again to Try to Smooth Out Lending Markets

WASHINGTON (AP) — The Federal Reserve is intervening once again to try to smooth out the world's lending markets, this time by lending dollars to other central banks in exchange for Treasurys.

The Fed's move marks its latest aggressive effort to keep borrowing rates down and ensure that financial markets can continue to function in the face of the coronavirus outbreak.

The virus has caused a near-shutdown of economic activity in the United States and abroad and has made it harder for some banks and companies to borrow.

The Fed is trying to facilitate lending and boost confidence that it's ready to do everything it can to support the global financial system.