The Federal Reserve cut its target range for the interest rate 50 bps on Wednesday. Analysts at Wells Fargo look for the FOMC to ease further by the end of the second quarter. Key Quotes: “Growth in the countries that have been adversely affected by the outbreak to date (e.g., China, South Korea, Italy, etc.) should exert headwinds on U.S. export growth in coming months. In addition, individuals in the United States are starting to cancel travel, which will negatively affect U.S. airlines and travel destinations.” “The temporary closure of factories in the affected countries could lead to supply chain disruptions in the United States, which could then cause production in the economy to downshift sharply.” “The recent swoon in the stock market and the associated widening in corporate bond spreads represents a tightening in financial market conditions.” “We look for the FOMC to cut rates further.” “The exact timing of additional rate cuts is highly uncertain because it depends largely on the evolution of the coronavirus outbreak. But at this point we look for the committee to cut rates a total of 50 more basis points by the end of the second quarter. That said, we readily acknowledge that this forecast could be upended by the evolution of the outbreak. If the outbreak is quickly contained, not only in the United States but in most foreign economies as well, then the FOMC may not end up cutting further. If, on the other hand, the outbreak in the United States accelerates sharply, then the U.S. economy could conceivably slip into a mild recession. In that event, the FOMC could cut rates all the way back to the zero lower bound.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US President Donald Trump: US may block travel to coronavirus hot spots FX Street 3 years The Federal Reserve cut its target range for the interest rate 50 bps on Wednesday. Analysts at Wells Fargo look for the FOMC to ease further by the end of the second quarter. Key Quotes: “Growth in the countries that have been adversely affected by the outbreak to date (e.g., China, South Korea, Italy, etc.) should exert headwinds on U.S. export growth in coming months. In addition, individuals in the United States are starting to cancel travel, which will negatively affect U.S. airlines and travel destinations.” “The temporary closure of factories in the affected countries could lead to supply chain… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.