Federal Reserve Cuts Rates (Lower Bound) To Zero And Launches Massive $700 Billion Quantitative Easing Program (100 BP CUT!)

The Federal Reserve, saying “the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” cut interest rates to essentially zero on Sunday and launched a massive $700 billion quantitative easing program to shelter the economy from the effects of the virus.

The new fed funds rate, used as a benchmark both for short-term lending for financial institutions and as a peg to many consume rates, will now be targeted at 0%-0.25% down from a target range of 1% to 1.25%.

fedcutsagain

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The Dow Minis (futures) are down 1,000 as of 6:29pm EST.

dowdown1000

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