The United States cut interest rates to nearly zero, and launched a $ 700 billion stimulus program, in an effort to protect the economy from the impact of the Corona virus.
These measures coincide with efforts announced on Sunday in the United Kingdom, Japan, the Eurozone, Canada and Switzerland.
Jerome Powell, President of the US Federal Reserve, told a news conference that the global epidemic had had a “profound” impact on the economy.
US President Donald Trump said the emergency operation “made me very happy.”
The Federal Reserve lowered interest rates to a range between 0% and 0.25%, and said it would start buying bonds, as part of the quantitative easing process, a move that directly pumps money into the economy.
The board cut interest rates by half a percentage point after an emergency meeting on March 3.
This is the first rate cut outside the regular meeting of the Federal Reserve, since the financial crisis in 2008.
Stock markets have fallen in recent days, amid fears that economic paralysis will erase corporate profits and spark a global recession.
But early indications are that the Fed may not support the financial markets.
In an interview after the emergency meeting, Powell warned that it was too early to know how the outbreak of the Corona Virus would affect the economy.
“The economic prospects are developing on a daily basis and they depend on the spread of the virus … This is not known,” he said.