Federal Reserve Slashes Interest Rates To Near 0 Amid Coronavirus Pandemic Will Purchase 700B In Bonds Securities
In the emergency announcement, the monetary authority said the interest rates will be maintained at near zero until the economy withstands the effects of the coronavirus. The central bank also urged banks to supply credit to the economy through the elimination of reserve requirements and by allowing financial firms access to capital. “The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals,” the Federal Reserve said in a statement, adding that the COVID-19 pandemic has “harmed communities and disrupted communities in many countries....