The Fed urgently lowered the rate in connection with coronavirus

The US Federal Reserve on Tuesday lowered its key rate by 0.5 p / p to 1 - 1.25%. This decision was made at an extracurricular meeting, held on Tuesday. The goal of this step is to minimize the consequences of the spread of coronavirus, explained in a statement FOMC. According to the document, the economy of the United States remains a solid foundation, but the epidemic poses new threats to business activity. This factor, as well as the goals for achieving maximum employment levels and price stability were the basis for rate cuts, the regulator explained. US exchanges first reacted to this message with growth, then quickly went down, having lost 2 - 3% at the close. Profitability US 10- and 30-year bonds fell to a minimum values ​​in history. Experts believe that investors have spent analogy with 2008, when the Fed resorted to drastic measures to saving the economy. According to investment strategist ITI Capital Iskander Lutsko, voiced in an interview with RIA Novosti, the decision of the department will increase volatility in the markets.