Actually, Sunday is not the usual time to announce interest rate decisions. But the US Federal Reserve is responding to the spread of the corona virus and lowering key interest rates for the country.
The Federal Reserve has surprisingly cut interest rates for the second time in two weeks because of the consequences of the spread of the corona virus. The new range is zero to 0.25 percent – one percentage point lower than before, as the central bank announced.
The Fed wants to protect the US economy from the consequences of the pandemic. “The effects of the corona virus will put a strain on economic activity in the short term and pose a risk to economic development,” the Fed justified the move. The new range will remain at this level until the economy has weathered recent developments and is back on track to meet its employment and price stability targets.
Most recently, the Fed cut key interest rates by half a percentage point on March 3. It was the first rate cut since the 2008 financial crisis outside of a regular meeting of its members. The next meeting is scheduled for Tuesday and Wednesday.
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