- The US Federal Reserve cut interest rates to near zero as an emergency response to CoronaVirus fears that have led to a bear market.
- The Fed will also buy mortgage-backed securities and treasuries in an attempt to stabilize markets.
- US stock futures plunged after the announcement and crypto markets briefly fell but remained steady as they wait for the rest of the stock market to open on Monday.
The US Federal Reserve slashed interest rates to near zero late Sunday, as an emergency response to the CoronaVirus spread that has led both stocks and crypto into bear markets. Crypto markets initially fell after the announcement, regained momentum briefly, then collapsed as investors digested the news.
"I don't make calls on short term price movements, but I generally think the Fed's actions are (a) going to be proven to be ineffective and (b) are bullish for Bitcoin long term," Morgan Creek Founder Anthony Pompliano told Decrypt in an email, shortly after the Fed cut was announced.
This is the second time in the past week that the Fed has cut interest rates as CoronaVirus fears burst confidence in markets and caused a major sell-off early last week. The Fed also said today it would buy $700 billion in mortgage-backed securities and treasuries in an attempt to prevent major disruptions in markets this coming week.
“We will maintain the rate at this level until we’re confident that the economy has weathered recent events and is on track to achieve our maximum employment and price stability goals,” Fed Chairman Jerome Powell said during a press conference on Sunday.
Early signs are pointing to another chaotic week. US stock futures plunged after the market opened on Sunday despite the emergency measures.
What crypto influencers are saying about the rate cut
Here’s what some crypto influencers are saying today: