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March 15, 2020 The US Federal Reserve has cut interest rates to 0-0.25% to counteract the consequences of the coronavirus emergency."The effects of coronavirus - reads a statement - will weigh on economic activity in the short term and pose risks for the economic outlook. In light of these developments, the Committee has decided to reduce the target range for the rate on federal funds from 0 to 0.25%. The Committee plans to maintain this target range until it is sure that the economy has withstood recent events and is on track to achieve its maximum employment and price stability targets. "
The Fed also launched a massive $ 700 billion Quantitative Easing program to support the economy and protect it from the impact of the coronavirus. It is about buying $ 500 billion in treasury bills and $ 200 billion in mortgage bonds.
Coordinated central bank action against crisis
In these hours there is coordinated action by the world central banks to ensure liquidity in support of the economy threatened by the coronavirus emergency: this is what is also read in a Fed statement.
Trump: Fed's decision a big step
"We are very happy. A big step": so Donald Trump speaking to journalists in the White House commented on the Fed's decision to bring rates close to zero and to enter 700 billion of liquidity against the crisis.