The Fed FREAKS: Central bank cuts rates by HALF POINT in the face of the Coronavirus
The Fed is determined to avoid being accused of influencing the election. But it is getting closer to negative rates, and negative rates destroy banks, as has happened in Europe. Negative rates can also destroy insurance companies and pension plans.
The Federal Reserve announced Tuesday that it is cutting interest rates by half a percentage point, an emergency move designed to bolster the U.S. economy amid risks posed by the coronavirus outbreak, which is expected to endanger economies around the world.
The move came after a week of investor panic in financial markets that had sent stocks plunging by as much as 10 percent.