Markets Still Digesting Fed Cut
Silver prices have rebounded this week, with gains of close to 4 percent. The catalyst for the gain was the emergency rate cut by the Federal Reserve, which surprised the markets with the 0.50% cut. The significance of this move cannot be overstated, as the last time the Fed made a rate cut between policy meetings was in 2008, during the financial crisis. Fed policymakers can be credited with taking decisive action at a time when the coronavirus is causing economic mayhem and threatening to cause a global recession. The Fed is counting on the sharp rate cut to boost the U.S. economy, with fears that the virus could spread rapidly in the U.S., as it has done in countries in Europe and Asia.
