Lowering the fed rate today will support the markets

the Evening of March 15, the fed announced the decision to lower the target range for the Federal funds rate to 0-0. 25% to support the economy ahead through coronavirus Covid-19 quarantine.

the Rate will remain low until the Federal Committee on open market operations, the fed will not be convinced that the economy is able to overcome new challenges.

This decision is supported by U.S. financial market, and major stock market indices rose by 9.3%, in particular Dow Jones to 23185 p., S&P 500 to 2711 p., Nasdaq Composite - up to 7874 p.

To ensure the stable operation of markets of Treasury securities and mortgage-backed securities agencies that play a Central role in the flows of credit to households and businesses in the near future, the fed will increase the portfolio of US government bonds is at least $ 500 billion, and the portfolio of mortgage bonds issued by government agencies Ginnie Mae, Fannie Mae, Freddie Mac – at least $200 billion.

Last week the U.S. Federal reserve cut its benchmark interest rate by 0.5% to 1-1. 25%.

Quotes on Brent crude oil on Friday fell by another 3.7% to by 32.57 $/a barrel after the closure of the borders between States and termination of air and rail traffic.

This will continue to put pressure on prices for vegetable oil and corn used for biofuel production, despite the reduction of consumption by the population due to close on quarantine all public places, including cafes and restaurants in some countries.