March 16, 2020
The financial markets in freefall Monday morning after the Federal Reserve announced on Sunday that it slashing interest rates by a full percentage point to near zero and said it would buy $700 billion in Treasury securities. This is an aggressive step to protect the U.S. economy from the coronavirus pandemic.
Currently, the benchmark federal fund rate is at a range of 0 to 0.25 percent, down from a range of 1 to 1.25 percent. The cut essentially brings the nation’s interest rate to zero. President Trump has repeatedly pressured the Fed to something that President Trump has repeatedly pressed for over the past year.
“The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals. To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities that are central to the flow of credit to households and businesses, over coming months the Committee will increase its holdings of Treasury securities by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion,” the Federal Open Market Committee said in a statement.
Globally, stock exchange continued to fall and no optimism to be found, according to USA Today – Paris tumbled 9% shortly after the open, London sank 7% and Frankfurt gave up 7.5%. In Asian trading, Sydney’s benchmark plunged 9.7%, Hong Kong’s Hang Seng lost 3.4% and India shed 5.9%.
In conclusion, investors do not think that the Fed’s actions are enough to steer us away from a recession, and that a massive fiscal stimulus is going to be required.
52 week low/high
Breaking News: Wearable Health Solutions Inc. Launches New Direct-to-Consumer Website to Expand it’s Market Share into $8.20 Billion Global Personal Emergency Response Systems Market
Wearable Health Solutions Inc. (OTC: WHSI), a leading provider of wearable health solutions, is delighted to announce the launch of its new Direct-to-Consumer website, https://www.1800medalert.com/. This exciting development aims to bring their...
Boeing Profits Slide in First Quarter as Pandemic Weighs
The Boeing Company (NYSE: BA) stock jumped more than 8 percent Wednesday after it has reported first-quarter financials. The major manufacturer of commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch...
Conduent Collaborates with Amazon Web Services to Help Government Improve COVID-19
Conduent Incorporated (NASDAQ: CNDT) announced Thursday that its disease surveillance and outbreak management platform, Maven®, is now available on Amazon Web Services (AWS). According to the Company, the Maven solution was recently configured to...