US Fed rate cut was expected; virus containment to drive markets: Analysts

In a statement, the US Fed said it was cutting rates by a half percentage point to a target range of 1 per cent to 1.25 per cent

The 50-basis point (bps) rate cut by the US Federal Reserve (US Fed) on Tuesday was in line with analyst expectations. The American central bank cut the interest rate in an emergency move designed to shield the world's largest economy from the impact of the coronavirus (COVID-19) outbreak.
 
Expectations of such a move were gaining momentum amid the sudden escalation in coronavirus cases across the globe that threatened to derail global growth.
 

“A rate cut was inevitable. Earlier, trade wars were causing deflationary pressures