Fed slashes rates in emergency coronavirus move, Trump calls action 'terrific'

Fed slashes rates in emergency coronavirus move, Trump calls action 'terrific'

With panic buying on Main Street and fear-driven sell-offs on Wall Street, the U.S. Federal Reserve cut interest rates to near zero on Sunday in another emergency move to help shore up the U.S. economy amid the rapidly escalating global coronavirus pandemic.

This report produced by Chris Dignam.

(SOUND BITE) (English) U.S. PRESIDENT DONALD TRUMP, SAYING: "It just happened minutes ago but, to me, it makes me very happy.

And I want to congratulate the Federal Reserve." President Donald Trump hailed the Federal Reserve on Sunday after the U.S. central bank took the extraordinary step of cutting interest rates almost to zero in an effort to help protect the economy and financial system, amid the rapidly escalating coronavirus pandemic.

(SOUND BITE) (English) U.S. PRESIDENT DONALD TRUMP, SAYING: "I think that people and the markets should be very thrilled." Facing a growing economic crisis that stretches across the globe as schools and businesses shut and Americans hunker down, the Fed took the emergency action ahead of the market open on Monday, slashing its key interest rate by a full percentage point and pledging to buy huge amounts of government debt - all the more remarkable coming just days after the Fed cut rates by 1/2 percent.

(SOUND BITE) (English) FEDERAL RESERVE CHAIRMAN JEROME POWELL, SAYING ON MARCH 3, 2020: "The virus and the measures that are being taken to contain it will surely weigh on economic activity both here and abroad for some time." The move is designed to keep liquidity in the system and position banks to lend freely.

The Fed has been under intense pressure from Trump throughout his presidency to lower rates.

And on Sunday, he said he was satisfied - for now.

(SOUND BITE) (English) U.S. PRESIDENT DONALD TRUMP, SAYING: "I'm very happy they did it and you will not hear anything bad about me unless it's about a month or two from now." But investors initially responded to the news by selling.

Stocks futures plunged to their limit following the Fed's actions.