The Fed says the programs will provide $300 billion in new financing.
The Fed's NY branch, which handles the financial transactions, said it would start out by purchasing $75 billion per-day in Treasuries and $50 billion per-day in mortgage-backed securities.
In addition, the Fed said it would soon unveil a program to lend directly to small- and medium-sized companies - those that have been hardest hit by the near complete shutdown of the United States economy as authorities fight to contain the spread of the virus.
"While great uncertainty remains, it has become clear that our economy will face severe disruptions", the Fed said in a statement. "Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate", the Fed said in a statement.More news: Telecom operators ask Over-the-top media services to reduce video quality
Yet another program, a Term Asset-Backed Securities Loan Facility, will "enable the issuance of asset-backed securities backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration and certain other assets".
Both programs will last until September 30, 2020.
Earlier this month, the bank slashed interest rates to near zero.
Finally, the Federal Reserve expanded the scopes of the Money Market Mutual Fund Liquidity Facility (MMLF) and the Commercial Paper Funding Facility (CPFF) to include additional assets.
For the first time, the Fed will dip its toes into the corporate bond market by contributing to a lending facility that will be used to buy corporate bonds issued by highly rated companies.More news: HK bans foreign travellers, alcohol sales
The Fed had previously committed to buying at least $500 billion of Treasury securities and at least $200 billion in mortgage-backed securities.
Under the Fed's authority granted by Section 13 (3) of the Federal Reserve Act, the central bank then lends to the SPV to support the vehicle's purchases. The SMCCF will purchase investment-grade corporate bonds of US companies and select USA -listed exchange-traded funds.
The TALF is also structured as a special goal vehicle.
Furthermore, the spot markets opened in the negative territory despite the Fed's announcement. The next scheduled FOMC meeting is April 29.More news: COVID-19: National Guard to be deployed in NY, California, Washington