OREANDA-NEWS. The US Federal Reserve System (Fed), which acts as the country's Central Bank, has lowered the rate to almost zero as part of the risk management of coronavirus. This is stated in a statement issued on Sunday by the Federal Committee for Open Market Operations (FOMC, Fed management).

"The consequences of coronavirus will affect economic activity in the short term, and this poses a threat to economic prospects. In the light of this development, the committee decided to reduce the target range of the federal funds rate to 0-0.25%", the statement said.

"The Committee expects to maintain this target range until it is sure that the economy has withstood recent events and is on the way to the targets of maximum employment and price stability", the document emphasizes. In addition, the Federal Reserve announced that it is moving to a policy of so-called quantitative easing. The system will purchase additional bonds totaling $ 700 billion, of which $ 500 billion will be in US Treasury bonds.