Coronavirus: USA’s Federal Reserve reduces interest rate to 0; launches $700bn programme

Coronavirus: USA’s Federal Reserve reduces interest rate to 0; launches $700bn programme

- The Federal Reserve of the United States of America (USA) has announced a reduction in interest rates

- It disclosed that the rates are now between 0% to 0.25% which a reduction from the previous 1% to 1.25%

- It has launched a $700 billion quantitative easing (QE) programme to protect the economy

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The Federal Reserve of the United States of America (USA) has announced a $700 billion quantitative easing (QE) programme.

This comes after its decision to reduce the interest rate to zero in the wake of the coronavirus epidemic.

The QE programme is designed to help with the purchase of assets such as the Treasury and mortgage-backed securities.

Coronavirus: USA’s Federal Reserve reduces interest rate to 0; launches $700 bn programme

Jerome Powell, Chairman of the Federal Reserve Source: nytimes.com
Source: UGC

READ ALSO: Commercial banks in Ghana realize GHC3.3 billion in profit in 2019 - Bank of Ghana

According to the Federal Reserve, the outbreak of the coronavirus has disrupted economic activities in several countries around the world.

Per a report by CNBC, it added that the intended measures are to help protect the economy from the effects of the coronavirus.

The interest rate would range between 0% to 0.25% which a reduction from the previous 1% to 1.25%.

The Federal Reserve has also reduced the rate of emergency lending at the discounted window for banks by 125 basis points to 0.25%.

It again increased the term of loans to 90 days but none of these measures were enough to stop a negative response from the market.

In other news, Ghana has taken steps to fortify security around its border with Togo in a bid to detect the virus in time.

This comes after both countries confirmed cases of the coronavirus which has resulted in the loss of lives around the world.

YEN.com.gh understands that the measures were confirmed by the Aflao Sector Commander of the Immigration Service, Chief Superintendent Fred Duadu.

Speaking to Accra-based Joy FM, he indicated that "a thermal scanner has been installed at the border health post to help identify travelers who may be infected with the virus.”

READ ALSO: Uber to suspend drivers and riders who test positive for coronavirus

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