The Coronavirus Toll As of March 4*;
Number of Cases Worldwide: 93,097
Death Rate 3.4%
Fed Rate Cut
The US Federal Reserve cut its interest rates by 50 basis points in a rare, extraordinary on Tuesday to counterbalance the coronavirus impact on the world and the American economy.
The virus, meanwhile, continued to spread as it killed 9 people in the US. In Italy, South Korea, Japan, and Iran, the number of cases exceeded thousands, as it was seen in more countries in South America. Germany banned medical equipment export while in France the state seized all mask and protective clothing stocks.
“The fundamentals of the US economy remain strong. However, the coronavirus poses evolving risks to economic activity,” the Fed said.
“The committee closely monitors its developments and its effects on the economic outlook, will use its tools to support the economy and act appropriately,” the FOMC members said.
“Of course the ultimate solutions to this challenge will come from others, particularly health professionals. We can and will do our part, however, to keep the US economy strong as we meet this challenge,” Fed Chair Jerome Powell said in a press conference.
Panic Sales in the Stock Market
In the US, the Fed’s lowering of interest rates led to a decrease in stocks due to panic.
The US 10-year treasury bond yield fell below 1 percent for the first time in history.
More Banks to Follow
Nomura, the Japanese financial institution wrote that it expected an urgent 25 basis-point interest rate cut from the Bank of England this week.
Fed President Jay Powell said at a press conference after the decision that he was in contact with other central banks and worked in a coordinated manner.
During the day, the G7 treasury ministers and central bank heads gathered and promised to use every available tool against the effects of the virus in a joint communique.
The first similar move after the decision came from the Hong Kong Monetary Authority lowered interest rates by 50 basis points.
Former US Vice President Joe Biden made a remarkable comeback yesterday in the Democratic Party’s Super Tuesday 14 state presidential primaries and received most of the delegates, mainly in Texas, North Carolina, and Massachusetts.
But the Socialist Bernie Sanders appeared to win California.
By outdoing Sanders in most of the states, Biden increased his chances of becoming the Democratic party’s candidate to run against Trump in the November presidential election
*Source: World Health Organization, China National Health Commission, Johns Hopkins Center for Systems Science and Engineering Reuters