Fed slashes rates, rips open crisis tool kit to cushion coronavirus blow

The Federal Reserve took emergency action on Sunday to help the economy withstand the coronavirus by slashing its benchmark interest rate to near zero and saying it would buy $700 billion in Treasury and mortgage bonds.

By aggressively slashing its benchmark short-term rate to near zero and pumping hundreds of billions of dollars into the financial system, the Fed’s moves Sunday recalled the emergency action it took at the height of the financial crisis.Starting in 2008, the Fed cut its key rate to near zero and kept it there for seven years. The central bank has now returned that rate _ which influences many consumer and business loans – to its record-low level.

“The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals,” the central bank said. All told, the Fed's actions amount to a recognition that the US economy faces its most perilous juncture since the recession ended more than a decade ago.

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Fed takes emergency steps to slash rates and ease bank rulesThe Federal Reserve took emergency action Sunday to help the economy withstand the coronavirus by slashing its benchmark interest rate to near zero and saying it would buy $700 billion in Treasury and mortgage bonds. The Fed’s surprise announcement signaled its concern that the viral outbreak will depress Yahoo That pretty much shoots their wad. If the economy goes to crap anyway . . . Yahoo
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The Fed just cut rates to 0% — here’s what that means for mortgage ratesThe Federal Reserve cut its benchmark interest rate to 0% on Sunday — but don’t necessarily expect lower mortgage rates as a result. The Fed announced it... Why not? People has to find some savings and mortgage companies need to adjust to help them & establish long term relationships with barrowers. Lower mortgage rates are good now to increase buying and people spending. Remove the mandatory 20% down payment for the home and younger people will start buying homes. Think about all people not just 1%
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