The Fed slashed interest rates by half a percentage point in the first such emergency move since the 2008 financial crisis
The Federal Reserve slashed interest rates by half a percentage point in the first such emergency move since the 2008 financial crisis, amid mounting concern that the coronavirus outbreak threatens to stall the record U.S. economic expansion. The rate cut, which came between the central bank’s regularly scheduled meetings, was announced hours after Group of Seven finance chiefs held a rare teleconference to pledge they’d do all they can to combat the fast-moving health crisis.
Indonesia’s central bank has vowed to strengthen its policy mix to head off the risk of further fallout from the impact of the coronavirus crisis. Bank Indonesia welcomed the move by the Federal Reserve to deliver an emergency rate cut of 50 basis points as the virus epidemic continues to roil markets and rattle investor confidence around the globe. Indonesian policymakers do not have a plan to hold an emergency meeting of their own at this stage, officials said. “We see Fed’s rate cut as a pre-emptive move and the right one at a time like now,” Bank Indonesia Senior Deputy Governor Destry Damayanti said on Wednesday, “We don’t want to see huge swings, we want to smooth the movement,” she said. (Bloomberg)