INSUBCONTINENT EXCLUSIVE:
The Federal Reserveannounced today that it has slashed interest rates as part of an effort to stabilize the economy following a rocky week
on the financial markets.
The bank Board of Governors cut interest rates to near-zero, the second time that the central bank has cut
interest rates in as many weeks
The Federal Reserve also launched a $700 billion quantitative easing (QE) program to help prevent a further economic downturn sparked by the
spread of coronavirus.
A statement said the bank will maintain its interest rates &until it is confident that the economy has weathered
recent events and is on track to achieve its maximum employment and price stability goals.&The combination of interest rate cut and
extensive QE will all but exhaust the Fed stimulus options going forward.
Stock futures for the major market indices are currently down
about 5% Sunday evening.
It comes after a painful week across U.S
On Thursday, the Dow Jones Industrial Average (DJIA) dropped by just shy of 10% in the worst day of trading since 1987
A day later, the markets sharply rebounded.
President Trump also said on Sunday from the White House that Americans should &relax& and stop
hoarding goods from stores, which are facing shortages as supply chains react to massively increased demand
Major online retailers like Amazon, Walmart and Target have reportedly run out of basic household goods, like toilet paper.
There are more
than 142,000 confirmed cases of the COVID-19 coronavirus strain globally, according to the World Health Organization latest situation report
on Saturday, with some 3,300 confirmed cases in the United States.
The global pandemic has resulted in several countries, including Denmark
and Poland, to shut their borders, and entire countries, like Italy and Spain, to go on lockdown, restricting the movements of its citizens
in an effort to limit the spread of the virus.
Earlier on Sunday, U.K
authorities advised all British nationals and residents against all but essential travel to the United States.
News of the travel advisory
came shortly before new U.S
travel restrictions are set to take effect on Monday night, effectively banning all travelers from Europe for 30 days — sparing only U.S
citizens and lawful permanent residents
The Trump administration later extended the ban to the U.K
and Ireland following a spike in confirmed infections.
UK is advising against all travel to the US amid the coronavirus pandemic
