The world’s pile of negative-yielding debt has grown as the economic backdrop soured and fears of a pandemic mounted.
The Federal Reserve has voted unanimously to cut the interest rate 50 basis points to 1.10% effective March 4, in the first emergency rate cut since 2008.
The Federal Open Market Committee cut the fed funds rate target 50 basis points to a range between 1% and 1.25%, it announced Tuesday.
Policymakers may not wait until their mid-month meeting and could act with other central banks.
The Federal Reserve is monitoring the COVID-19 issue and its economic effects, according to a release from the central bank, attributed to Chairman Jerome Powell, released Friday.
Attention is focused on the impact COVID-19 may have on economic growth in the United States in the short and long term.