In a Sunday White House press conference, President Trump applauded the Fed’s efforts to cut rates to 0-0.25%. “I didn’t expect this and I like being surprised.”
The Federal Reserve surprised Wall Street with a Sunday decision to cut rates to zero, ahead of a planned meeting of the Fed on Tuesday and Wednesday with a decision expected Wednesday.
In a statement explaining the decision, the Fed said, “The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. Global financial conditions have also been significantly affected,” in a statement.
The Fed decision was nearly unanimous with only Loretta Mester dissenting, preferring a cut of 0.5 to 0.75.
Commenting on his public criticism of the Fed, Trump said he wouldn’t have anything bad to say about the Fed for “a month or two. “
Trump also commended efforts from some of corporate America’s biggest companies including General Mills (GIS) - Get Report, Cisco (GIS) - Get Report, Costco (COST) - Get Report, Tyson Foods (TSN) - Get Report, Dollar General (DG) - Get Report, Walmart (WMT) - Get Report and more.
Trump stressed that these names and others have promised that stores will remain open, adding that supply chain in the U.S. is strong. “Stores are stocking up at a level beyond Christmas time," Trump stressed.
Speaking on the stockpiling occurring in many households, Trump said that families should only buy what they need for “a nice dinner.” Vice President Mike Pence later added that the average family only needs a week’s supply of food.
All three major market indices closed up over 9% Friday.
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