WASHINGTON, D.C. – The U.S. Federal Reserve announced the largest rate cut since 2008 today in a move to try to offset economic fallout from complications arising from the Coronavirus epidemic.
In a statement, the Fed said today, “The fundamentals of the U.S. economy remain 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 1/2 percentage point, to 1 to 1‑1/4 percent. The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.”
The 1/2 percentage point cut is the largest rate cut since 2008 when the stock market was in a free fall. Reportedly, the move by the Fed today is to allay fears of the Coronavirus and stop the current stock market sell off. After today’s announcement, the Dow Jones Average dropped 500 points. Further rate cuts are a possibility, multiple news outlets are reporting.
President Donald Trump praised the Fed’s rate cut today, tweeting, “The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!”
Trump Train??? only thing the train is gunna do is run over his sass come november
President Trump is right when he says we are not on a level playing field when it comes to Interest Rates. Many countries are at 0% or at a minus level to compete for business in the world markets.
I suspect the Coronavirus is as good an excuse an any to lower interest rates. The Federal Reserve has been raising rates unnecessarily for political reasons to undermine the Trump economy.
I believe the Federal Reserve Board has finally realized that President Trump’s agenda is working and has finally joined the Trump Train!
Thats funny. Trump appointed the chairperson. and 4 of the 5 board members.
For being the winners the Trump supporter claim to be they sure do a lot of whining.
He hires only the best people so how can they actually go against him?
Sham-o-matic. Blaming the stock market nosedive on the Chinese now. The market is way too high. Has been for awhile now. Cooking the books more like it. 401k’ers are safe no worries. HaHaHaHa
This post makes no sense. I didn’t see anything blaming the Chinese.
Stock market had the third highest increase in history yesterday. now you look as stupid as you sound.