US Fed Cuts Interest Rates Sharply, Dow Futures Plunge

In order to battle the massive slowdown likely due to the coronavirus outbreak, the U.S. Federal Reserve cut interest rates by 100 basis points on Sunday to a target range of 0% to 0.25%. The Fed would also expand its balance sheet by at least $700 billion in coming weeks, as there is could be a massive slowdown in economic growth.

However, markets were not impressed and stock market futures hit "limit down" levels of 5% lower, a move made by the CME futures exchange to reduce panic in markets.
Asian markets were trading significantly lower with the Japanese Nikkei down 1.36 per cent, while the Australian S&P A/X 200 was down more than 5 per cent.

The US Fed interest rates is now down to zero and there many not be any more weapns that the US central bank now has. Sunday's announcement by the US Fed comes on the back of a 50 basis points interest rate cut already announced earlier this month.