Fed Slashes Interest Rates

“The Federal Reserve slashed its benchmark interest rate to near zero on Sunday and said it would buy $700 billion in Treasury and mortgage-backed securities in an aggressive bid to prevent market disruptions from aggravating what is likely to be a severe slowdown from the coronavirus pandemic,” the Wall Street Journal reports.

New York Times: “Besides cutting its key interest rate by a full percentage point, returning it to a range of 0 to 0.25 percent, the Fed said that it would increase its holdings of Treasury securities by at least $500 billion and its holdings of government mortgage-backed securities by at least $200 billion ‘over coming months.'”