Federal Reserve Interest Rate Cut Near Zero Due to Corona-virus Pandemic
Federal Reserve Interest Rate Cut Near Zero Due to Corona On Monday, Federal Reserve took a hostile step to cut the interest rates to almost zero, which accentuated trepidations of the economy tilting into a corona virus-driven decline. S&P 500 ETFs (P:SPY) fell to 9% after the Fed cut off short-term prices by 100 basis points and assured sweeping asset acquisitions in next couple of weeks. S&P 500 futures dropped 4.77% that knocked down a daily trading limit suddenly, signifying huge losses. Central banks in New Zealand, Australia and Japan joined the Fed in declaring striking monetary slackening in a co-ordinate exertion, which was not seen since 2008 economic decline, but was not succeeded to support the sentiments of global investor. Global stocks drop down to almost 2%, oil prices crashed and even safe-haven gold took a blow as Spain and France joined Italy in entering the virtual closing and the overall death excise from the outbreak exc...