Federal Reserves Cuts Interest Rates To Zero

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US Federal Reserve building in Washington DC

The Federal Reserve has made its second rate cut this month in an effort to pump up the economy during what the central banking system calls a “challenging period.” The Federal Reserves statement reads, in part:

The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. This action will help support economic activity, strong labor market conditions, and inflation returning to the Committee’s symmetric 2 percent objective.

Donald Trump reacted to the news during a White House press briefing Sunday afternoon.

Despite the cut, Dow futures for Monday tanked, down nearly 900 points.