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2020/03/16 / Erste Group Research

Short Note | US Fed tries to stabilize markets

Yesterday evening, and thus only three days before the end of the next regular meeting, the US Federal Reserve lowered the range for the key interest rate by 100 basis points to 0-0.25%.

In addition, a further round of security purchases was announced yesterday. In the coming months, at least USD 500bn of US Treasury bonds will be purchased and at least USD 200bn of mortgage backed bonds.

Obviously these measures were so urgent that they could not wait until Wednesday. It is doubtful whether this will calm the global markets, because what matters is how quickly the coronavirus spreads. But for the Treasury market, the support should be more than enough.

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General information

AuthorErste Group Research
Product nameShort Notes Major Markets
Topic in focusMacro/ Fixed income
Economy in focusUnited States
Currency in focusUS Dollar
Sector in focus-


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