Surprise rate cut by the Fed

//Surprise rate cut by the Fed

Surprise rate cut by the Fed

CNN: The Fed just hit the coronavirus panic button

Article published: March 3, 2020

IB Economics syllabus: Macroeconomics (expansionary monetary policy)

It seems like the coronavirus has effects other than on hockey sticks, in fact now the Fed (the U.S. Central Bank) has also reacted to it. In fears of a fall in economic growth (not to mention, a recession…) the Fed has cut the interest rate by a surprise move today by 0.5%. What’s interesting, is that such a sudden (there was no meeting scheduled), and such a large cut has not occured since the Financial Crisis (actually, since 2008). A great article to analyze Central Bank intervention (expansionary monetary policy).

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By | 2020-03-04T09:38:43+00:00 March 3rd, 2020|Macro|Comments Off on Surprise rate cut by the Fed

About the Author:

My name is Daniel Szekely and I work as an IB Economics tutor, examiner and teacher. Having earned an MA degree in Economics at the University of Aberdeen, I started my career as a financial analyst at Morgan Stanley, one of the largest investment banks of the world. Yet, despite the promising career prospects of the banking industry, I decided to make a larger social impact by becoming a teacher. Currently, I teach IB Economics at SEK Budapest International School and have been an examiner for over 8 years. I started EconDaddy as a simple blog to share great articles with my students and others taking IB Economics around the world to use for their commentaries. Being a practicing IB Economics tutor, I have first hand insight into the most common mistakes of students, so the EconDaddy blog now also provides exam and commentary writing tips.

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