Fed cuts rates in emergency measure
Print Edition
The US Federal Reserve cut interest rates yesterday in an emergency move designed to shield the world鈥檚 largest economy from the impact of the coronavirus, as Group of Seven finance officials pledged 鈥渁ppropriate鈥 unspecific policy moves.
In a statement, the Fed said it was cutting rates by a half percentage point to a target range of 1.00 percent to 1.25 percent.
鈥淭he fundamentals of the US economy remain strong. However, the coronavirus poses evolving risks to economic activity,鈥 it said in a statement.
Finance ministers from the G7 said yesterday they would use all appropriate policy tools to achieve strong, sustainable global growth and safeguard against downside risks posed by the fast-spreading coronavirus.
G7 finance ministers were ready to take action, including fiscal measures where appropriate, to aid the response, Japanese Finance Minister Taro Aso told reporters. Central banks would continue to support price stability and economic growth.
鈥淲e reaffirmed our commitment to adopt all appropriate policy steps to protect the economy from downside risks posed by the coronavirus, and that we stand ready to cooperate further on timely and effective measures,鈥 Aso said.
He was short on specifics and said the desirable policy response would vary from country to country.
Asked if all appropriate steps would include both monetary and fiscal policies, Aso said: 鈥淵es, anything will be included, both monetary and fiscal steps.鈥
The G7鈥檚 united front offset anxiety over the coronavirus rapid spread in dozens of countries and aided a recovery in world stocks and oil prices.
鈥淭his is a tug of war between hope and fear. Central banks are giving hope with their potential stimulus,鈥 said Vasu Menon, senior investment strategist at OCBC Bank Wealth Management.
鈥淭he question is what they will do? Monetary policy is already very loose and interest rates are very low.鈥
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
