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The US Federal Reserve, in another emergency move, cut interest rates by a full 100 basis points on Sunday, 15th March.
The central bank also announced a restart of its quantitative easing program.
According to the new QE, the Fed pledged to buy up to $700 billion in asset purchases which include Treasuries and mortgage-backed securities ($500bn of Treasuries and $200bn of mortgage-backed securities).
The central bank also cut the emergency lending rate at the discount window for financial institutions by 125 basis points to 0.25%. Additionally, it increased the length of the loans to a period of 90 days.
The move comes ahead of the Fed meeting due this week, though investors had been hoping that the rate cut would come during the FOMC meeting.
This is the second “emergency move” from the central bank in 2 weeks. The decision came as the Fed said that the financial markets were facing a heavy disruption.
The bank has also been under pressure from President Trump who has lon...
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