The US Federal Reserve urgently reduced the base interest rate due to coronavirus

The Federal Reserve System (FRS) of the United States has urgently lowered the base interest rate to protect the economy from the consequences of the coronavirus epidemic. Reuters writes about it.

The rate was cut by 0.5 percentage points to a target range of 1-1.25%.

“The coronavirus is an evolving risk to the economy. In light of this, and in support of meeting its employment and price stability goals, the Fed has decided to lower its target range for the federal funds rate.

• The fact that the Fed made a decision on the rate before the meeting scheduled for March 17-18 indicates the need for urgent action to prevent a global recession, the agency points out.
• After the decision of the US regulator, a barrel of Brent for May delivery on the London ICE exchange rose by $1.66 (3.2%) to $53.5, Interfax reports . The cost of WTI with deliveries in April on the New York Mercantile Exchange (NYMEX) rose by $1.15 (2.46%) to $47.9 per barrel.
• Earlier, May Brent futures fell below $50 per barrel amid fears due to the COVID-19 epidemic. six trillion dollars in the week ending February 28 Global stock markets lost .