- The Federal Postpone slashed its main interest rates to near zero in an emergency move. It’s part of a broader government effort to relax the economic effects of the coronavirus pandemic.
- The central bank also announced several other actions, including throw off banks borrow from the discount window for as long as 90 days.
- President Donald Trump, who long required for the Federal Reserve to cut interest rates, said the move made him „very happy.“
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The Federal Reserve slashed its benchmark interest rate on Sunday by a full percentage point to near zero. The Fed’s key be worthy of is now 0% to 0.25%, matching the record low it was last at in 2015.
The central bank also said it will increase its bond holdings by $700 billion. The pinch moves are part of a broader government effort to ease the economic effects of the coronavirus pandemic.
„The coronavirus outbreak has maltreated communities and disrupted economic activity in many countries, including the United States,“ the central bank said in a annunciation on Sunday.
„Global financial conditions have also been significantly affected,“ it added. „Available economic details show that the US economy came into this challenging period on a strong footing.“
The central bank also disclosed several other actions, including letting banks borrow from the discount window for as long as 90 epoches and reducing reserve requirement ratios to zero percent. In addition, it united with five other central banks to confirm dollars are available around the world via swap lines.
President Donald Trump, who long called for the Federal Substitute to cut interest rates, said the move made him „very happy.“
Trump has also railed against Federal Restraint chairman Jerome Powell, when the central bank raised interest rates.
„I think the Fed is making a mistake,“ Trump told in 2018, after the Fed raised rates for the fourth time that year. „They are so tight. I think the Fed has gone stupid.“
Powell in a news conference on Sunday said the recent cut was triggered because „when stresses arise in the Treasury market, they can reverberate in every nook financial markets and the entire economy.“