The Federal Reserve has done something that won’t sit well with the American public. Suddenly cutting interest rates due to the coronavirus is very telling of what is about to happen.
It was to be expected, but banks are feeling a lot of pressure.
Coronavirus Causes Financial Stress
That situation had become apparent well before the coronavirus outbreak became a pressing problem.
This virus is expediting decisions which were bound to be made sooner or later.
For the Federal Reserve, it means cutting interest rates without prior warning.
This is a clear sign of how the American economy – and thus the rest of the world – is struggling right now.
It is also the first unexpected rate cut since the financial crisis of 2008.
Making such a decision despite rising stock markets caught a lot of people off-guard.
As the coronavirus outbreak only seems to worsen, such proactive measures may not be without merit.
In the US, more cases are being reported every day, and the worst may be yet to come.
In Washington State, one in three diagnosed patients has died.
How these rate cuts will affect the US economy moving forward, remains uncertain.
It is certainly possible that future cuts may prove necessary to avoid financial disaster.