March 3, 2020 (MLN): The US Federal reserve cut the benchmark Interest Rate by 50 basis points to the range of 1%-1.25%, the biggest rate cut since the financial crisis of 2008, in an attempt to contain the fallout from the coronavirus COVID 19 which has taken its toll on the financial markets.
In a statement the Fed said ” The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 to 1-1/4 percent. The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy”.
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