U.S. slashes rates to near zero, eases bank lending rules

. The central bank said the effects of the outbreak will weigh on economic activity in the near term and pose risks to the economic outlook. The central bank said it will keep rates at nearly zero until it feels confident the economy has weathered recent events.

The Fed also announced that it has cut interest rates on dollar loans in a joint action that it has taken with five central banks overseas. That is intended to ensure that foreign banks continue to have access to dollars that they lend to overseas companies. "We have to hope that the Fed getting out in front of events, not to mention other central banks, pushes the economy in the right direction," said Adam Posen, president of the Peterson Institute for International Economics. "The heavy lifting for stimulus and for preventing lasting economic damage has to be done on the fiscal side. That's nature of this shock."

Mnuchin also said he did not think the economy is yet in recession. Most economists, however, believe a recession is already here, or will be soon.. JPMorgan Chase predicts the economy will shrink 2% in the current quarter and 3% in the April-June quarter. Two weeks ago, in a surprise move, the Fed sought to offset the disease's drags on the economy by cutting its short-term rate by a half-percentage point -- its first cut between policy meetings since the financial crisis. Its benchmark rate is now in a range of 1% to 1.25%. Some analysts have forecast that the Fed will reduce its rate by just one-half or three-quarters of a point on Wednesday, rather than by a full point.

The central bank took a huge step in that direction Thursday, when it said it would provide $1.5 trillion of short-term loans to banks. The central bank will provide the cash to interested banks in return for Treasuries. The loans will be repaid after one or three months.

The Wuhan virus, was it animal to human cross over or the paranoid Chinese government screwing around with biological agents in their Wahun research lab?

Who fucking cares about the USA?

OMG ! What will Canada do ?

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