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Fed Ready to Cut Rates Despite Doubt They Can Offset Virus

  • Wall Street banks predict March cut, disagree over depth
  • Powell issues rare statement promising to support U.S. economy
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Fed Will Cut Rates Three Times and May Restart QE, Sri-Kumar Says
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The Federal Reserve is now prepared to reduce interest rates this month even though it recognizes monetary policy cannot completely shelter a U.S. economy increasingly threatened by the coronavirus.

Fed Chairman Jerome Powell opened the door to a rate-cut at the Fed’s March 17-18 meeting by issuing a rare statement Friday pledging to “act as appropriate” to support the economy.