In response to the coronavirus pandemic, President Trump announced that the Federal Reserve has sculpted a cut to interest rates. After a bear market that has been unseen in over a decade, the Fed moved faster than expected to prevent an economic free-fall.
The Federal Reserve hopes the slashing of rates to 0-0.25% will prevent a credit crunch and recession similar to the last time rates hit the bottom, in 2008.
On top of lowing rates, the Fed announced it would purchase $700 billion worth of Treasury bonds and mortgage-backed securities. It also reached agreements with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank to lower rates on currency swaps to keep the global markets moving smoothly.
During his Sunday press conference, the President also announced he had met with major grocery retailers and received commitments that the flow of grocery inventory would be smooth, and urged citizens to relax on their buying habits.
After the President left the podium, Vice President Pence took to the lectern to urge the nation to maintain regular shopping habits, in order to keep supply and demand balanced.
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