Coronavirus us slashes rates and launches huge stimulus programme
You're referring to the economic response to the COVID-19 pandemic in the United States. Here's a summary:
Federal Reserve slashes interest rates:
On March 3, 2020, the Federal Reserve, the central bank of the United States, cut its benchmark interest rate by 1 percentage point to a range of 1.00% to 1.25%. This was the largest single-day rate cut in over a decade. The Fed also announced that it would buy up to $500 billion in Treasury securities and $200 billion in mortgage-backed securities to inject liquidity into the financial system.
Launch of the CARES Act stimulus program:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Donald Trump. The $2.2 trillion stimulus package was designed to mitigate the economic impact of the pandemic. Key provisions included:
- Individual stimulus checks: Up to $1,200 per individual and $2,400 per married couple, with an additional $500 per child.
- Unemployment benefits: An additional $600 per week in unemployment benefits for up to 39 weeks.
- Small business loans: The Paycheck Protection Program (PPP) provided forgivable loans to small businesses to help them retain employees and cover expenses.
- Business tax credits: Credits for businesses that kept employees on their payrolls and for those that experienced significant revenue declines.
- Healthcare funding: Additional funding for hospitals, healthcare providers, and research into COVID-19 treatments and vaccines.
- State and local government aid: Funding for state and local governments to help them respond to the pandemic and maintain essential services.
The CARES Act was a massive stimulus package that aimed to support individuals, businesses, and the overall economy during the pandemic.