UPDATED: Fed Slashes Rates to Near Zero to Fight Coronavirus Slowdown

UPDATED: Fed Slashes Rates to Near Zero to Fight Coronavirus Slowdown

The Federal Reserve will slash its benchmark interest rate to near zero on Sunday, according to President Donald Trump.

According to the Wall Street Journal, the Fed will buy $700 billion in Treasury and mortgage-backed securities in an aggressive bid to prevent market disruptions from aggravating what is likely to be a severe slowdown from the coronavirus pandemic.

“The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” the Fed’s rate-setting committee said in a statement Sunday. “The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses.”

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Fed Chairman Jerome Powell held a news conference at 6:30 p.m.- listen below.