Bitcoin Reacts to Fed’s 0% Rate Drop, Reserve Requirements Removed, $700B in Stimulus

On Sunday, the U.S. Federal Reserve slashed the benchmark short-term rate by 100 basis points bringing it to zero. In addition to the rate cut, the Fed promised $700 billion in bond purchases and eliminated all reserve requirements for smaller financial institutions. However, the Fed’s rate cut didn’t help financial markets as stock markets and futures products worldwide have continued to tumble.
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The Federal Reserve Slashed the Benchmark Rate to Zero – $700 Billion Will Stimulate Bond Markets The coronavirus outbreak has caused an economic meltdown of wide proportions and it has invoked central banks worldwide to leverage aggressive monetary policy. On March 15, the U.S. Federal Reserve announced that it was cutting the benchmark short-term rate by 100 bps and plans to inject $700 billion into bond markets. Moreover, the Fed removed reserve requirement buffers on Sunday, which allow..