The fed lowered its interest rate due to risks to the US economy
The regulator took emergency measures in connection with the spread of the coronavirus and the fall of markets. For the first time since the 2008 financial crisis, the rate decision was made at an emergency meeting. Donald trump is in favor of even more base rate cuts.
The us Federal reserve, which serves as the country’s Central Bank, lowered the interest rate by 50 basis points to 1 – 1.25% on March 3 as a measure of economic stimulus. The decision was made after an emergency meeting.
The US economy remains strong, but the spread of the coronavirus poses growing risks to economic activity, the fed said in a statement.
“The virus itself and measures against its spread, of course, will affect economic activity for some time, both here and in other countries,” — commented on the decision of the head of the Federal reserve Jerome Powell. “We are confident that this measure will be able to seriously revive the economy,” he added.
The last time the fed announced an interest rate cut after an emergency meeting was in 2008 during the global financial crisis.
US President Donald trump has called for an even bigger rate cut. “It’s finally time for the fed to take the initiative. More easing and lowering!» – the President wrote on Twitter.
Trump has recently repeatedly called on the fed to cut interest rates.