Federal Reserve Cuts Interest Rates (3rd March 2020)
Emergency Rate Cut, as Coronavirus Spreads
This afternoon (3rd March 2020), the US Central Bank (Federal Reserve) has announced an emergency cut of 0.5% in the interest rate. See the BBC article here!
The Chairman of the Fed (Jerome Powell) was quotes as saying that the
“US economy remained strong. However, the coronavirus poses evolving risks to economic activity.”
“In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by half a percentage point to 1% to 1.25%”.
Is this justified, or is the Coronavirus masking more sinister issues in the US (and World) Stock Markets? We’ll be discussing this tomorrow, amongst other things, during the Inner Circle Webinar.
As ever, please do your own research (DYOR) and make up your own minds accordingly.
If you have any comments or observations, regarding the above, then please use the contact us form Here.
Mick (3rd March 2020)