Fed slashes rates again to shore up economy as coronavirus spreads

by Lewis Krauskopf
The Federal Reserve unexpectedly cut interest rates on Sunday for the second time in less than two weeks, an emergency move to help shore up the U.S. economy as a coronavirus pandemic spreads worldwide. …Karen Petrou, Managing Partner of Federal Financial Analytics said “The only way the Fed can quickly reach the 40% of American workers who enter poverty after just two lost paychecks and salvage millions of small businesses is to open facilities not just for the financial market, but also for hard-pressed households and small businesses. “Waiting for liquidity – even this much liquidity – to funnel through banks to borrowers is waiting too long. “Even if banks are willing and able to make safety-net loans, few, if any, have established programs to do so. The Fed has to make immediately clear what loans it will support and how; only then will money move fast to those who need it the most.”