Washington, March 16: Faced with a growing economic shutdown amid the global new coronavirus pandemic, the Federal Reserve has announced drastic emergency measures to shore up confidence and keep the financial sector running, including slashing the key interest rate to virtually zero.

The Fed on Sunday made its second emergency rate cut in less than two weeks, cutting the benchmark borrowing rate to a range of 0-0.25 percent, where it was during the 2008 global financial crisis, and pledged to keep it there "until it is confident that the economy has weathered recent events." Coronavirus Relief Package Passed by US House of Representatives For Americans Hit by COVID-19 Pandemic.

The central bank also announced massive asset purchases, opened its discount lending windows to banks and urged them to use it to help businesses and households. In another move, it removed bank reserve requirements to allow them to use cash backstops. (AFP)

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