Federal Reserve chairman Jerome Powell warned of the threat of a prolonged recession resulting from the viral outbreak and urged Congress and the White House to act further to prevent long-lasting economic damage.
The European stock markets rallied on Tuesday as intervention from the US central bank finally helped to boost global sentiment.
The Federal Reserve is stepping up its purchases of Treasurys to try to ease jitters in the financial markets over the coronavirus outbreak.
Stock markets have endured further volatile trading as investors remained nervous after the “Black Monday” meltdown saw the worst day for London blue chips since the 2008 financial crisis.
The major European markets climbed for a second day on hopes that governments and central banks will intervene and provide stimulus in response to the coronavirus outbreak.
The US Federal Reserve will cut interest rates by half a percentage point in its first emergency rate cut since the Great Recession in response to the spreading coronavirus.