The US Federal Reserve cuts interest rates to nearly zero to counter the effects of the Corona virus

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On Sunday, the US Federal Reserve decided to reduce key interest rates for the second time in less than two weeks, to between zero and 0.25 percent, in order to address the potential economic effects of the outbreak of the Corona virus in the United States and around the world. For his part, President Donald Trump was quick to praise the Fed’s decision, calling it “startling”.

Took the Federal Reserve American (The Central Bank) Sunday is a set of radical and urgent measures aimed at enhancing confidence and maintaining the financial sector, as it reduced the main interest rates to nearly zero, in order to face the repercussions of the outbreak of the Corona virus.

Thus, the Federal Reserve reduced the main interest rate for the second time in less than two weeks to settle between zero and 0.25 percent, which was the rate that was set before the global financial crisis of 2008, pledging to keep it at this rate until ensuring that the economy surpasses the consequences of the outbreak of the Corona virus. .

The Federal Reserve announced the purchase of $ 500 billion in treasury bonds and $ 200 billion in mortgage bonds, and opened the door to lending to banks to urge them to help companies and individuals overcome the consequences of the Corona virus pandemic.

And the US central bank raised restrictions it imposed to allow banks to use the reserves.

The US Central Bank will cooperate with a number of global central banks to ensure adequate liquidity in financial systems, in a coordinated move with the European Central Bank and central banks in England, Japan, Canada and Switzerland.

Trump was quick to praise the Fed’s measures.

He said during a meeting with the Anti-Corona Virus Cell that the decisions of the Central Bank are “amazing”.

“What just happened is astounding,” the US president added, stressing that he was “very happy. I didn’t expect that. I like surprises.”

France 24 / AFP