As the coronavirus continues to spread throughout the country, the Federal Reserve made an emergency interest rate cut Tuesday, slashing the nation’s benchmark borrowing rate by half a percentage point. The central bank has not made an emergency move like this since late 2008, following the Lehman Brothers bank collapse.
“We recognize the rate cut won’t affect the rate of infection, and it won’t fix a broken supply chain, but we do believe that our action will provide a meaningful boost to the economy,” Jerome H. Powell, chairman of the Federal Reserve, said Tuesday in a news conference about the surprise cut. He noted that the move was intended to “boost household and business confidence” and mirrors action taken by central banks around the world.
The rate cut is good news for seniors housing and care operators, at least in the short term, as it could potentially lower loan costs.
Many financial experts suggest the central bank may cut rates again at its March 18 meeting.
