Global stocks fell on Monday despite the US Federal Reserve unleashing its full firepower to support the economy through the coronavirus outbreak when it pledged to buy government bonds in unlimited amounts.
The new measures, which include a historic step to buy corporate debt, add monetary heft to the effort to save the US economy, which is expected to contract sharply in coming weeks.
The Fed’s action came as senior Trump administration officials and congressional leaders clashed over a $2tn package of fiscal stimulus. There were more disagreements on Monday after friction between Democrats and Republicans had held up a deal over the weekend.
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