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In an Emergency Meeting,
US Central Bank Cuts Interest Rates Half Percentage BP to Combat
Coronavirus
The Federal Council said in a
statement that it had decided to cut the benchmark federal funds rate by
half a percentage point to a range from 1.00% to 1.25%.
The Council said "The foundations of
the US economy are still strong". Yet, the Corona virus poses an
escalating risk to economic activity. In
light of these risks and in support of achieving their goals to maximize
employment and price stability, the Federal Open Market Committee
decided today to reduce the target range for the interest rate of
federal funds”.
The Fed’s decision to cut interest
rates ahead of its next monetary policy meeting on March 17-18 reflects
the urgency of the US Central Bank to act to prevent a possible global
recession.