The U.s. central Bank lowers for the second time in a few weeks, the rate of interest. It informs the bank in a press release.
According to the international news agencies falling interest rates by a full percentage point down to 0.25 percent.
It happens to shield the u.s. economy as a result of the outbreak of the coronavirus.
'the Effects of coronavirusset will affect economic activity in the short term and pose a risk to the economic outlook', writes the central bank about the decision.
At a news conference in these minutes, the us president, Donald Trump, the central bank is happy with the decision and expresses its satisfaction with the monetary policy intervention.
- I am very happy that it is succeeding. It is a big surprise for me, and as you know, I love surprises, says Donald Trump on rentefaldet.
Rentefaldet is done in close coordination with several leading central banks and the European central Bank.
With the low interest rate it becomes possible for the us banks to lend cheaply to the us traders.
as well As the business of the rest of the globe, is the u.s. the self-employed have been hard hit by the global pandemic.
in addition to lowering the interest rate the central bank has also several other measures to support the economy.
the Bank would again start buying bonds in order to keep the hand under the economy.
It is a tool, which was used in the years after the financial crisis, but as current was phased out, as the good times returned.
the central Bank notice that it will purchase bonds of up to 700 billion u.s. dollars in this place.