Central bank of the US, Federal Reserve announced cut in its target interest rate to near zero as part of the emergency action to support the US economy amid the coronavirus situation
…would cut its baseline interest rate range to 0 to 0.25 per cent and will increase holdings of treasury securities by at least USD 500 billion and its holdings of agency mortgage-backed securities by at least USD 200 billion said the Federal Open Market Committee (FOMC) in a statement.
The Fed before had lowered the interest rates by half a percentage point — a move that has then marked the biggest one time cut since 2008.
“The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 per cent,” the statement read.
Util the economy recovers the committee expects to maintain the said target range.
(Source: News Agencies)
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