{"id":166579,"date":"2020-03-16T09:15:59","date_gmt":"2020-03-16T13:15:59","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=166579"},"modified":"2020-03-16T08:57:40","modified_gmt":"2020-03-16T12:57:40","slug":"fed-urgently-cut-interest-rate","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/03\/fed-urgently-cut-interest-rate\/","title":{"rendered":"Fed Urgently Cut Interest Rate"},"content":{"rendered":"
March 16, 2020<\/div>
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by JustForex<\/a><\/strong><\/p>\n

The US dollar strengthened against a basket of major currencies on Friday. The dollar index (#DX) closed in the green zone (+1.33%). However, today the US currency is declining sharply. Yesterday, the US Federal Reserve urgently reduced the base interest rate to zero and announced the launch of a large-scale program of quantitative easing. The regulator lowered the rate to 0-0.25%, announced plans to purchase additional government bonds $500 billion worth and guaranteed mortgage-backed securities of $200 billion. The Fed also called on banks to increase lending from existing reserves. These measures were taken in order to stabilize financial markets and support the US economy.<\/p>\n

All are concerned about a flash of coronavirus. A number of countries around the world have announced a stricter regime as methods of combating a pandemic. In many countries, external borders are closed, and a ban on movement between different cities is introduced, except for special needs. Educational institutions, cinemas, theaters, museums, sports facilities, discos, pubs are closing.<\/p>\n

China’s economy has shown the worst figures over the past 30 years. Industrial production fell by 13.5% in February, while experts forecasted growth by 1.5%. Fixed investments collapsed by 24.5%. And the unemployment rate rose by 6.2% in China.<\/p>\n

The “black gold” prices continued to fall. Currently, futures for the WTI crude oil are testing the $30.45 mark per barrel.<\/p>\n

Market indicators<\/h2>\n

On Friday, shares in the US stock market started to recover: #SPY (+8.55%), #DIA (+9.43%), #QQQ (+8.47%).<\/p>

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The 10-year US government bonds yield fell again. At the moment, the indicator is at the level of 0.77-0.78%.<\/p>\n

The news feed on 2020.03.16:<\/div>\n