The Federal Reserve made the biggest cuts to interest rates since 2008 on Tuesday in an attempt to shield the U.S. economy from the impact of coronavirus.
The Fed lowered its fund rates to a range of 1%-1.25%, a decrease of half a percentage point, according to USA Today. While President Donald Trump acknowledged the cuts in a tweet, he also called for the Fed to continue them. Tuesday’s emergency cut is the largest the Fed has made since the start of the Great Recession in 2008. (RELATED: Lou Dobbs Calls Out Alex Azar Over Lack Of Coronoavirus ‘Transparency’)
The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!
— Donald J. Trump (@realDonaldTrump) March 3, 2020
“The fundamentals of the U.S. economy remain strong,” the Fed’s policymaking committee said in a statement. “However, the coronavirus poses evolving risks to economic activity.” (RELATED: Corona Sales Up 3.1% Amid Coronavirus Scare)
Markets saw the largest crash since 2008 throughout last week but rallied in with the largest single-day gains since 2009 on Monday in anticipation of the rate cuts.
Market volatility is likely to remain if the coronavirus pandemic continues over the coming months. Experts at the Department of Health and Human Services and the Centers for Disease Control and Prevention have said a vaccine for the disease is at least a year away at the earliest.