US Federal Reserve Cuts Interest Rate

Hülya Karahan: Production Editor

istanbulpostcomtr@gmail.com

The Federal Reserve, the US Central Bank, has cut its interest rate by 0.5 percentage points three days after local economic uncertainty has escalated due to the new coronavirus infection (Corona 19).

The Fed said in a statement posted on its homepage that it will cut its 0.5 percent point from 1.00 to 1.25 percent.

This was preemptively lowered ahead of the FOMC on the 18th of this month.

The Fed said the fundamentals of the US economy are still strong, while the coronavirus is raising the risk of economic activity.

“We saw a risk to the outlook for the economy and chose to act,” Fed Chair Jerome H. Powell said at a news conference shortly after the rate-cut announcement.

The cut led to a stock market rally, but it was short-lived.

 

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US Federal Reserve Cuts Interest Rate - /10

Summary

The Federal Reserve, the US central bank, has cut its interest rate by 0.5 percentage points three days after local economic uncertainty has escalated due to the new coronavirus infection (Corona 19).

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