Fed's failure to fix credit plumbing leaves markets scrambling for dollars

A global scramble for US dollar financing worsened on Monday as the Federal Reserve's aggressive move to flood markets with cash failed to temper borrowing costs and unclog funding for companies and banks hit by the coronavirus outbreak. The Fed slashed interest rates on Sunday, with central banks in New Zealand, Australia and Japan also cutting rates and pumping massive amounts of stimulus into battered markets.

Other central banks also expanded stimulus last week. But an absence of Fed measures to directly finance bank holdings.

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