Washington: The US central bank on Tuesday announced a major cut in benchmark interest rates by 0.5 percent, taking a surprising step. The Federal Reserve is believed to have taken this step to support the economy amid Corona virus outbreaks.
Federal Reserve Chairman Jerome Powell said the corona virus poses a risk to economic activity. The Federal Reserve has cut interest rates for the first time since last year.
Last year it had cut interest rates three times. This is the first time that the central bank has cut interest rates in the midst of policy review meetings after the 2008 global financial crisis. It is also the largest rate cut since that time. After this announcement by the Federal Reserve, the stock market climbed nearly 700 points in a positive range.