Fed Cuts Interest Rate By 0.5%
March 3, 2020 by Jack Anderson
In an unexpected yet unsurprising move, the Federal Reserve cut the interest rate by half a percent today, following the financial meltdown that occurred last week, when the stock marked plunged the fastest in History.
While many expected the Fed to react, this marked the first time that the Federal Reserved cut the interest rate with no prior notice since the crisis of 2008. This proves how difficult the current situation is – the Coronavirus is spreading across the globe and no one knows how long the crisis will last. Jerome Powell, the Federal Reserve Chairman, shared a similar feeling by explaining that "I don't think anybody knows how long it will be."
US President Donald Trump was quick to comment the news. In a Tweet published today, he asked for more actions from the Fed: "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!"
At first, the investors welcomed the news, but that did not last for long. Soon after the announcement, the stock market continued its decline. There are big chances that this decline is only beginning.
on 2020-03-03 14:06:35 ET
So the stocks continue to fall? Good luck fixing that once there won't be any rate to cut anymore. There is nothing below zero.
By Julia Despentes
on 2020-03-03 17:21:10 ET
Well actually, there are also negative interest rates. So there's that...