Fed, ECB aim to prevent downturns with limited ammo

Japan News | Sep 13, 2019 at 10:53 AM
  • The Federal Reserve and the European Central Bank are struggling mightily to invigorate their economies at a time when growth is slowing, governments remain on the sidelines and the banks’ usual stimulative tools appear less effective than in the past.
  • On Thursday, the ECB approved several measures: It cut the rate on deposits it takes from banks to minus 0.5 percent from minus 0.4 percent, a penalty that pushes banks to lend their excess cash.
  • This program pumps newly created money into the financial system to lower borrowing costs and help the economy.