It also removed bank reserve requirements to allow them to use cash backstops to meet unexpected funding needs. The Fed joined forces with other major central banks to guarantee the global financial system has enough cash to continue to operate. President Donald Trump, who in the past has repeatedly berated the independent central bank for not acting more aggressively, praised the moves. “What’s happened with the Fed is phenomenal news,” Trump said at a regular briefing of his Covid-2019 task force. In joint action coordinated with the European Central Bank, Bank of England, Bank of Japan, Bank of Canada and the Swiss National Bank, the central banks moved to counteract global “dollar funding pressures,” Powell said.

Source: Manila Times March 16, 2020 17:35 UTC