( Reuters) – The Federal Reserve will cut U.S. rate of interest by 25 basis points later this month however it is a close call, according to a Reuters survey of economic experts who have considerably raised their projections for the opportunities of an economic downturn following the coronavirus break out.
FILE PHOTO: The Federal Reserve seal is seen during Chairman Jerome Powell press conference following the two-day meeting of the Federal Free Market Committee (FOMC) meeting on rate of interest policy in Washington, U.S., January 29,2020 REUTERS/Yuri Gripas/File Image
Those conclusions come after the Fed chopped rates of interest by 50 basis points on Tuesday – its first such emergency situation move since the monetary crisis – to balance out financial threats from the infection which have actually rocked financial markets for weeks.
But a big bulk of respondents – just over 85%- challenged the move, stating that cutting rates of interest was not the most efficient policy to combat disturbances from the spreading coronavirus epidemic.
The Fed’s rate cut failed to calm international monetary markets, with safe-haven Treasury yields hitting lifetime lows repeatedly. The S&P 500 index of Wall Street shares dropped over 10%from its Feb. 19 closing high, after logging its greatest weekly percentage decrease since October2008
” A rate cut by the Fed, especiall