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Federal Reserve Board Cuts
Rates to Near Zero Percent
16 March 2020
In an attempt to cushion the rapidly
growing economic effects of the coronavirus pandemic, and to further
stimulate the US economy, the US Federal Reserve Board has cut, on
Monday, the interest rates for the second emergency time in less than
two weeks.
The American Central Bank said in a
statement that it has lowered the targeted range of the interest rates
to between zero and quarter basis point percent.
The Fed said in its statement “the
effects of the coronavirus will weigh on the economic activity in the
near term and will pose risks to the economic outlook. In light of these
developments the Committee decided to lower the targeted range. The
Committee forecasts to leave the rates at this targeted range till a
conviction is formulated by the Committee that the economy surpasses the
recent developments and is heading towards the achievement of its
objectives represented in highest level of employment and stability in
prices”.
The Fed has earlier on 3rd
March cut the interest rates by half percentage point in an emergency
meeting outside the schedule of the regular policymaking meetings since
the financial crisis of 2008.
The next policymakers meeting was
scheduled on the 17th and the 18th March to
resolve on interest rates.