The Federal Reserve cuts interest rate to almost 0%
The Block Crypto media added that the cut reduces the interest rate to a target range of 0% to 0.25%
In the midst of the fight in the global market to stop the pandemic due to Covid-19, the Federal Reserve (FED) has made its first cut in the interest rate, throwing a target range of 0% to 0.25%, as reported by the American medium The Block Crypto.
“The Federal Reserve is carefully monitoring the credit markets and is ready to use its full range of tools to support the flow of credit to households and businesses and thus promote its maximum employment objectives and price stability,” said the FED.
Accordingly, the Federation plans to deploy $ 700 billion for the purchase of Treasury securities and agency mortgage-backed securities. The intention is to help support the “flow of credit to households and businesses.”
Rates were last recorded at this level in December 2008 and held for seven years. Subsequently, its highest value was 2.5% in 2018, just before the FED started the cut.
Due to the growing economic concerns, the meeting of the Federal Open Market Committee (FOMC) was urgently brought forward, where the legal component assured that “the available economic data shows that the United States economy entered this difficult period on a solid base”.
K.Villarroel
Source: Diariobitcoin
