In an emergency meeting Sunday, the Federal Reserve slashed its benchmark rate to zero–its second response to the volatile economic reaction to the coronavirus outbreak. The Fed also said it would buy $700 billion in Treasury and mortgage bonds. “The monetary policy change is the same one applied a decade ago during the Great Recession–the lowest rates combined with quantitative easing” says Lawrence Yun, chief economist at the National Association of REALTORS. “This is an all-out measure to prevent recession and fight the fear that is blanketing the country. It is the right policy, since the policy can easily be reversed should a vaccine be discovered or the virus goes away.” added Yun.
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