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Interest rates cut to near zero to combat coronavirus

WASHINGTON ( — On Sunday, the Federal Reserve cut its benchmark rate by a full percentage point to a near-zero, and will purchase $500 billion in Treasurys and $200 billion in mortgage-backed securities.

The Central Bank issued the following statement regarding the $700 billion quantitative easing program:

“The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”

The Federal Reserve cut interest rates for the first time approximately 2 weeks ago in an emergency move to help the U.S. economy amid the worldwide coronavirus pandemic.

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