The US Federal Reserve cut interest rates for the second time in less than two weeks today, in a new and extraordinary step to support the US economy amid the ever-expanding Corona Virus pandemic around the world.
The central bank said in a statement that it had decided to reduce the target range for interest rates to between zero and 0.25 percent.
“The fallout from the Coruna virus will burden economic activity in the near term and pose risks to the economic outlook. In light of these developments, the committee decided to reduce the target range,” the Fed said in the statement.
“The Committee expects to maintain this target range until it is convinced that the economy has exceeded recent events and that it is moving towards achieving its goals of maximum employment and price stability.”
The Fed had already cut rates by half a percentage point during an urgent meeting on March 3, in the first cut outside the regular policy meeting schedule since the 2008 financial crisis.
The next policymakers’ meeting to decide on interest rates was March 17-18.
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