Cutting interest rates to a target range of 0 to 0.25 per cent and announcing a return to quantitative easing – $700bn worth of asset purchases – on Sunday evening, the United States Federal Reserve signalled it will take all steps necessary to support financial markets. The intervention outside market hours unnerved investors, with the US S&P 500 losing almost 12 per cent on Monday. Although there was a six per cent upswing on Tuesday, as President Trump sought $850bn of fiscal measures, policy makers are struggling to control the narrative in the fight against coronavirus.
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