“I think this is a very timely decision. It says that the Fed has enough reason to think that the global economy is very slow. And in order to prevent this inhibition and reduce financial risks, she took such an extraordinary measure - she unexpectedly sharply reduced the rate, ”Abramov explained.
He also noted that there is another important decision related to the fact that the Federal Reserve will now be able to lend to five central banks (Bank of Canada, Bank of England, Bank of Japan, ECB and Swiss National Bank) through so-called swap contracts .
“That is, the United States for the second time in history took unprecedented measures when they began to lend to the central banks of other countries so that they would not experience problems with the liquidity of the dollar,” the expert concluded.
Earlier, the US Federal Reserve lowered its key rate to 0-0.25% against the background of the situation with coronavirus infection COVID-19.
On March 3, the agency lowered its key rate from 1.5-1.75% per annum to 1-1.25% against the backdrop of developing risks.