Fed’s shock and awe response to coronavirus

Fed’s shock and awe response to coronavirus
REUTERS |  US Federal Reserve Chairman Jerome Powell departs after speaking to reporters about the Federal Reserve interest rate cut

Fears of the coronavirus derailing the economy prompted the US Federal Reserve to cut interest rates by 50 basis points in an emergency measure on Tuesday. The FOMC had been expected to meet on 17-18 March but the drastic move “shows desire to provide shock and awe stimulus”, says Edward Park, deputy chief investment officer at Brooks Macdonald. Worryingly, the S&P 500 failed to respond positively and fell a further 2.8 per cent, closing just above 3000 on the day.

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