Skip to main content
Global Edition
Friday, March 29, 2024

Fed slashes interest rates in emergency move

Duration: 01:05s 0 shares 5 views

Fed slashes interest rates in emergency move
Fed slashes interest rates in emergency move

The Federal Reserve slashed its key lending rate by half a percentage point on Tuesday in an emergency move aimed at preventing the coronavirus outbreak from dragging the global economy into a recession.

Conway G.

Gittens reports.

In its most aggressive move since the financial crisis - The Federal Reserve Tuesday cut its benchmark rate by one-half a percentage point.

The emergency measure is designed to shield the world's largest economy from the impact of the spreading coronavirus.

In a statement, the central bank said the fundamentals of the economy remain strong, but still it was cutting rates by a half percentage point to a target range of 1.00 percent to 1.25 percent... The decision was unanimous among policymakers.

The Fed's unusual decision to cut interest rates before the next scheduled policy meeting in mid-March reflects the urgency with which the Fed feels it needs to act in order to prevent the possibility of a global recession.

Investors had been clamoring for the Fed to take action - after stocks suffered their worst losses in over a decade last week.

Stocks rebounded sharply on Monday - on hopes the Fed would cut rates..

... but some on Wall Street remain skeptical a rate cut is the remedy needed to deal with the financial damage and supply chain disruptions caused by the coronavirus outbreak.

You might like

Related news coverage

Advertisement

More coverage