US Central Bank made the decision to support the US economy struggling with the effects of the Corona epidemic • Trump: "The move makes me very happy"
Federal Reserve Chairman Jerome Powell // Photo: AFP
The US Federal Reserve announced today (Sunday), in an unprecedented emergency, to lower interest rates in the US to near zero, with the aim of giving "a boost" to the local economy following the Corona epidemic.
The move, which preceded the timing predicted by the experts and was under great pressure from the Washington administration, was aimed at preventing credit crunch and disruption to financial markets that occurred last week.
In addition, the Federal Reserve decided to buy $ 700 billion of government bonds and mortgages from the public, with the aim of stabilizing the economy and calming the market.
The last time such an interest rate cut was made in the United States was in 2008 during the subprime crisis, when the mortgage and hedge markets led to the collapse of the US financial system.
US President Donald Trump responded to the decision, saying he was "very happy with the move. The decision to lower interest rates is good news for America."