by Mike ‘Mish’ Shedlock
Over coronavirus concerns, the Fed just slashed interest rates to 0.00% to 0.25% in an emergency Fed meeting.
The FOMC rate cut decision was scheduled Wednesday March 18.
Instead, the Fed made this emergency Monetary Policy Statement today.
The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. This action will help support economic activity, strong labor market conditions, and inflation returning to the Committee’s symmetric 2 percent objective.