The Fed cut rates for the first time since 2008. The Federal Reserve on Wednesday lowered interest rates for the first time since the Great Recession in 2008 to help stave off the possibility of an economic downturn.
Policymakers led by Fed Chairman Jerome Powell voted 8-2 in favor of a small cut in the federal funds rate, and recommitted to their promise to "Act as appropriate" to sustain the country's longest economic expansion in history.
Interest rates, which affect the cost of borrowing for credit cards and mortgages, are now set to hover between 2% and 2.25%.
The rate cut follows months of pressure from President Donald Trump, who has broken with his predecessors' practice of walling off the central bank from politics. Ref. CNN.
Fed cuts rate to zero, launches more bond purchases in historic moves to fight coronavirus. Central bank policymakers agree to lower the Fed’s benchmark federal funds rate by a full percentage point to a range of zero to 0.25%. Ref. USAToday.
People with loans and mortgages will be really happy about that but at the same time if the virus is interrupting their ability to make money then there is nothing gained at all.
International Level: New Activist / Political Participation: 17 1.7%