Federal Reserve Cuts Interest Rate to Near Zero and Eases Lending Rules

In a surprise announcement, on Sunday afternoon, The Federal Reserve cut its key interest rate to near zero, a dramatic move not seen since the depths of the 2008 financial crisis. This is the U.S. central bank’s second emergency rate cut this month, as the Fed attempt to cushion the rapidly growing economic effects of the coronavirus pandemic. In addition to the rate cut, the Fed also announced measures to “support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities.” The Fed also announced plans to buy $700 billion in government securities.