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

Jonathan Boyd
clock • 4 min read

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% ...

To continue reading this article...

Join International Investment

Join International Investment today

Unlock members-only benefits:

  • Unlimited access to real-time news, industry insights, video features and market intelligence
  • Stay ahead of the curve with spotlights on international financial centres, regional trends international advice and global industry leaders
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Hear the latest cross jurisdictional developments in wealth planning, tax, regulation, investing, retirement and protection
  • Members-only access to the Editor’s weekly news roundup newsletter
  • Members-only access to analysis via our exclusive industry polls
  • Be the first to hear about our events and awards programmes

Join now


Already a International Investment member?


Jonathan Boyd
Author spotlight

Jonathan Boyd

Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope.