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Federal Reserve slashed rates of interest by 1 point in the last year

On Sunday, the Federal Reserve had slashed its interest rates by a complete percentage point and it has come near zero as it is going to be buying $700 billion in the Treasury Securities, a step which is aggressive for the insulation of the U.S. economy from the pandemic of coronavirus.

The outbreak of coronavirus had been harming the communities and the disruption in the economic activity in a lot of the countries as per the United States

The federal benchmark fund rate has now been given a range of 0-0.25% which is down from the range of 1-1.25. This cut brings the rate to zero essentially and that is something President Trump has been pressing on for the last year.

This is a historically low rate of interest that has not been given this level since the financial crisis of 2008 and has been expected to remain this way until the economy manages to recover from the downturn that has taken place recently

The committee has been expecting to maintain the target range till they are confident the economy has been able to weather the recent storms and is able to get back to the goals of maximum employment as well as stability of price. Fed said this Sunday evening in a statement.

Trump is very happy about the rate cut which is something he has been asking for a very long time. The Fed has also made a statement that it is going to be buying a minimum of $500 billion in the Treasury securities and the $200 billion in the mortgage backed securities in the coming months in the program which is called quantitative easing.

Ricky Pritchett
Editor In Chief At Healthcare News Reports

Ricky has an experience of more than 4 years here at Healthcare News Reports and is one of the few people that are connected with the platform from the advent of Healthcare News Reports. He has done his Bachelor’s Degree in Medical Science from a well-known university in the US. Apart from this, he has a couple of certificates that can let you know the writing skills and talent he possesses. Moreover, owing to his leadership abilities, Ricky is designated to be the lead of the Health division here at Healthcare News Reports. The content that is helmed by him is easily recognized owing to his writing skills.

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