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Coronavirus epidemic: rate cuts are not enough

We should have a contingency plan for the corporate and financial sectors in place

March 04, 2020 / 10:02 AM IST
Coronavirus epidemic: rate cuts are not enough

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The US Federal Reserve’s sudden 50 basis points rate cut signals that the economy and the financial system are headed for trouble, but it’ll do all that it takes to help. Of course, Fed chairman Jerome Powell insists the US economy is fine and the rate cut is just an insurance against future problems that may arise because of the spread of the coronavirus, but why have a rate cut between meetings then? It’s no wonder then that the...

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