Feds Slash Interest Rates to Near-Zero in Response to Pandemic
It is the second time in the past two weeks that the Board of Governors of the Federal Reserve cut interest rates.
The rates are the lowest since the financial crisis of 2008. The lowered rates are an attempt by the Fed to stabilize the U.S. economy. [The Fed will maintain the rate] until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals, Federal Reserve, Statement, TechCrunch.
The cut rates follow the most tumultuous week on Wall Street in decades. The coronavirus pandemic has strained global supply chains, with major retailers running out of basics such as toilet paper and water. Countries such as Denmark and Poland have closed their borders.
Travel bans have been instituted all over the world. On Sunday, the CDC recommended the suspension of gatherings of 50 people or more.