Goldman Sachs Group Inc. and Bank of America Corp. economists are among those predicting Federal Reserve policy makers could deliver an emergency interest rate cut if fears about the coronavirus continue to roil financial markets BNN Bloomberg reported.
Oct. 8, 2008
As the September collapse of Lehman Brothers Holdings Inc. roiled financial markets and raised recession fears, the Fed cut the federal funds rate by 50 basis points to 1.5% as part of a coordinated action.
“The Committee took this action in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures,” the Federal Open Market Committee said. It would go on to ultimately cut its main rate as low as 0.25%.
Jan. 22, 2008
The Fed cut its key rate by 75 basis points to 3.5% after stock markets tumbled amid increasing signs of a U.S. recession.
Policy makers said in a statement that they acted “in view of a weakening of the economic outlook and increasing downside risks to growth.”