Panicked Fed Slashes Rates to Near 0%, Throws $700 Billion QE on Top, after $1.5 Trillion Shock-and-Awe Repos Fizzled. Stock Futures Plunge 5%, Hit Limit Down

by Wolf Richter
Wolf Street

Holy moly, what a mess. But here is our hilarious cartoon of Jerome Powell tearing out his hair. Gotta keep you sense of humor.

Sunday at 5 p.m., the frazzled Fed announced in a statement that it slashed its policy interest rate by a full percentage point, to a target range between 0% and 0.25% for the federal funds rate and that it “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.”

It also slashed by a full percentage point to 0.25% the interest rate at its discount window, where banks can borrow from the Fed directly.

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