Fed slashes interest rates to near zero due to coronavirus

BREAKING NEWS: Fed slashes interest rates to near zero due to coronavirus

  • 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 by 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’
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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 by 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.

The US Federal Reserve has taken emergency action to lower interest rates to near zero over coronavirus concerns and warns of the virus’ risks to the country’s economic future. The Federal Reserve building is pictured in Washington, DC

‘The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals,’ the Fed said.

The Fed already cut interest rates by half a percentage point on March 3 at an emergency meeting, the first rate cut outside of a regularly scheduled policy meeting since the financial crisis in 2008.

Policymakers were not due to hold their next interest-rate setting meeting until March 17-18.

Read more at DailyMail.co.uk