Fed cuts target rate to near zero, pledges liquidity injection in Coronavirus response

The US Federal Reserve has cut its target rate to 0-0.25% following an extraordinary meeting of the Federal Open Market Committee, and pledged to inject liquidity into the US financial system through purchases of some $500bn of US Treasuries, and $200bn of agency mortgage-backed securities. Liquidity operations will target areas including the so-called discount window - the Fed will lower the primary credit rate by 150 bps to 0.25% effective 16 March; facilatating intraday credit; adjusting bank capital and liquidity buffers; and reducing resere requirements - the ratios wlil drop to 0% ...