Question

The Federal Open Market Committee meets approximately every 6 weeks to assess the condition of the economy. They ultimately release their minutes which can be viewed at federal reserve.gov. What were the areas of the economy that were most concerning to the committee members at their most recent meeting and why? What did they decide to do bout short term interest rates?

Answer 1

Corona virus is the major problem across the world currently. It has reduced the demand for money. Hence, rates are being reduced.

Federal Reserve policymakers at their March 15 meeting indicated that not only did they consider it important to use all their rate power now, but also that they intend to keep rates anchored at the bottom for the foreseeable future.

US economy has deteriorated sharply and become uncertain.

The key rates have been reduced by 0.75% and will be kept near zero.