Fed Slashes Interest Rates to Near-Zero, Buys Bonds to Buffer Economy in Coronavirus Outbreak

Read more on this subject: Federal Reserve
News Story Source: Breitbart
The U.S. Federal Reserve announced Sunday evening that it would slash interest rates to near-zero and buy billions of dollars in bonds in an effort to protect the U.S. economy from the ongoing effects of the coronavirus outbreak.

The rate cut of 100 basis points (1%) follows a cut two weeks ago by 50 basis points (0.5%). The rate will now be within a target range of 0% to 0.25%.

In a statement, the Fed said:

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. 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. This action
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