Washington D.C. — Today the Federal Reserve cut interest rates by half a percentage point to respond to the economic impact of coronavirus.
“The Fed’s move to cut benchmark interest rates by 50 basis points is the right move to help small businesses and consumers weather the economic impact of the coronavirus. By lowering the cost of borrowing, the Fed is allowing small businesses to make up for coronavirus-related costs with less expensive borrowing terms, while providing a strong stimulus for consumer demand. This aggressive move will help ensure that the broad economic prosperity enjoyed under the Trump administration is not dented by a black swan event. Coupled with the fall in the price of a barrel of oil price to $45, which will lower transportation costs and further increase consumer demand, the Fed’s move leaves small businesses well-prepared for the potential pandemic.”