* The Federal Reserve has taken emergency action to lower interest rates to near zero over coronavirus concerns
* The central bank said in a statement released on Sunday that it was cutting rates to a target range of 0 per cent to 0.25 per cent
* The Fed said the effects of the coronavirus is expected to ‘weigh on economic activity in the near term and poses risks to the economic outlook’
* It also will purchase more Treasury securities to encourage lending to try to offset the impact of the outbreak
* The Fed plans to buy $500 billion of Treasury securities and $200 billion of mortgage-backed securities in response to market disruptions
* The disruptions bumped up the yield on the 10-year Treasury last week, an unusual move that threatens to increase borrowing costs
The US Federal Reserve cut interest rates for the second time in less than two weeks on Sunday in another emergency move to help shore up the US economy amid the rapidly escalating global coronavirus pandemic.
In a statement, the central bank said it was cutting rates to a target range of 0% to 0.25%.
‘The effects of the coronavirus will weigh on economic activity in the near term and poses risks to the economic outlook. In light of these developments, the committee decided to lower the target range,’ the Fed said in a statement.
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WNU Editor: The world’s central banks are reacting …. Global central banks take sweeping action to fight coronavirus (Reuters), but the Asian and European markets are still being battered. The futures markets are also predicting a terrible day for Wall Street when the markets open Monday morning …. Markets brace for black Monday as Dow futures hit their ‘limit’ to stop panic after states started shutting down (Daily Mail). WOW! I thought I would never see a time where US interest rates are near zero, but we are there now.
Update: If this pandemic is not halted in the next few months, we are definitely heading into a recession …. U.S. is NOT headed for a recession says Steven Mnuchin – Treasury secretary makes extraordinary claim in the middle of coronavirus crisis after the worst week on Wall Street since the Great Recession, but admits a ‘slowdown’ is inevitable (Daily Mail).
Fed takes emergency steps to slash rates and ease bank rules — AP
US Federal reserve slashes rates to cushion coronavirus blow — France 24
Coronavirus forces US Federal Reserve to cut interest rate to near zero — ABC News Online
Rate cuts: US goes to almost zero and launches huge stimulus programme — BBC