The Federal Reserve on Sunday slashed the Fed’s funds rate by an additional -100 bps to combat economic risks from Coronavirus crisis.
On Sunday, the Fed lowered its policy rate by 100 bps on Sunday to a range of 0% to 0.25%, which is the record low last seen during the global financial crisis in 2008. This is the second time this month that the central bank has cut rates; on March 3, there was a -50 bps cut.
The Fed also announced its plan to purchase atleast $700 billion of assets (including new bond and mortgage-backed securities) over the coming months, starting Monday.
On Monday, there was a 15-minute halt on trading placed after markets opened to steep plunges. stocks plunged after being halted from trading soon after markets opened.