The Federal Reserve slashed rates to near zero as it joined with other central banks to ensure liquidity in dollar lending to help shore up a rapidly disintegrating global economy due to the coronavirus crisis
WASHINGTON - The U.S. Federal Reserve and global central banks moved aggressively on Sunday to buttress a world economy unraveling rapidly amid the coronavirus pandemic, with the Fed slashing interest rates to near zero, pledging hundreds of billions of dollars in asset purchases and backstopping foreign authorities with the offer of cheap dollar financing.
Given the depth and uncertainty of the risks, Powell said the Fed and other central banks were acting to ensure that financial markets keep functioning around the world, and trying to limit the chance that companies, households or financial institutions are dragged down by any slump in business. A broader set of Fed powers, including direct lending to financial firms, remains at the Fed’s disposal, and Powell said the central bank would not hesitate to use them if needed.
The Fed and other major foreign central banks also cut pricing on their swap lines to make it easier to provide dollars to financial institutions around the world facing stress in credit markets. Sunday’s dramatic steps show “the Fed is serious, the Fed is targeting the liquidity in the credit markets and Treasury markets and trying to make certain that they operate without dislocation,” said Quincy Krosby, chief market strategist at Prudential Financial in New York.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed takes emergency steps to slash rates and ease bank rulesThe Federal Reserve took emergency action Sunday to help the economy withstand the coronavirus by slashing its benchmark interest rate to near zero and saying it would buy $700 billion in Treasury and mortgage bonds. The Fed’s surprise announcement signaled its concern that the viral outbreak will depress
Read more »
Fed takes emergency steps to slash rates and ease bank rulesThe Fed’s surprise move to cut interest rates a full percentage point and buy $700 billion in Treasury and mortgage bonds signals that it will do all it can to counter the risk of the coronavirus outbreak causing a recession.
Read more »
Fed slashes rates, central banks pull out stops to cushion coronavirus blowThe Federal Reserve cut interest rates to near zero in another emergency move to help shore up the U.S. economy amid the rapidly escalating global coronavirus pandemic
Read more »
How Food Banks Are Gearing Up To Keep People Fed As Coronavirus SpreadsAs coronavirus spreads, food banks are increasing their orders and calls for volunteers in anticipation of higher demand for food assistance, and are preparing distribution plans so they can still reach vulnerable populations. wamu885
Read more »
Fed may announce commercial paper facilities Sunday - BofAThe Federal Reserve may announce measures on Sunday night aimed at bolstering li...
Read more »
Fed Slashes Rates to Fight Coronavirus SlowdownBreaking: Fed cuts rates to near zero and will purchase $500 billion in Treasurys, $200 billion in mortgage-backed securities, citing economic disruptions from coronavirus
Read more »