Shoring up the Treasury bond market and other sources of credit, Powell added, is vital to the health of the economy. “The virus is having a profound effect on the people of the United States and across the world,” Powell said. Starting in 2008, the Fed cut its key rate to near zero and kept it there for seven years. The central bank has now returned that rate — which influences many consumer and business loans — to its record-low level. Earlier Sunday, Treasury Secretary Steven Mnuchin said that both the central bank and the federal government have tools at their disposal to support the economy.

Source: Manila Times March 16, 2020 01:40 UTC