Federal Reserve’s rate cut just a painkiller, demand shock worries remain2 min read 04 Mar 2020, 10:45 AM IST
While the rate cuts are explicable, whether this will lead to a revival in growth is clearly in question
The rate cut, interestingly, has sent global equity markets into a tailspin
The US Federal Reserve’s emergency move of cutting interest rate by a sharp 50 basis points has done little to infuse confidence among investors. Global markets may still be staring at a huge slowdown in the economy. This is the eighth time in the last two decades that Fed has cut rates by 50 basis points in one go, suggesting that the impact of Covid-19 is much more acute than what was estimated earlier by the markets.
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