Free money: The Federal Reserve cuts interest rates to near zero
The Federal Reserve cut interest rates to zero on Sunday, March 15.
Reacting to the coronavirus pandemic and the hit to the world economy from shuttered factories and empty businesses, the U.S. central bank also unveiled plans to buy up government and mortgage-backed debt to shore up the economy.
A message from the central bank Sunday read: "The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses."
After the drop of one whole percentage point, the new range of rates is 0 to 0.25 percent. It will also buy $500 billion in treasury securities and $200 billion in government mortgage-backed securities over the coming months.
President Trump, who has long pressured the Fed to cut interest rates, making money cheaper to borrow, said, "It makes me very happy."
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