Silver Recovers as Fed Slashes Rates
Silver prices plunged 10% last week, but the Federal Reserve turned out to be just what the doctor ordered for ailing silver. The Fed shocked the markets with a sharp cut of 0.50% and this was the first time that the Fed cut rates in-between meetings since 2008. The emergency cut is being widely viewed as a response to the coronavirus outbreak, with growing fears that that virus could cause a global recession. Following the rate cut announcement, Fed chair Powell acknowledged that “the virus and the measures that are being taken to contain it will surely weigh on economic activity for some time, both here and abroad.” At the same time, Powell said that the move should provide “a meaningful boost to the economy.”
