Traders expect the U.S. Federal Reserve  and different central banks globally to do extra to rescue the worldwide economic system from a downturn brought on by the continued coronavirus disaster.

The Fed lowered its benchmark fee by 50 foundation factors in an off-schedule assembly this week. However merchants have priced in one other reduce on the subsequent scheduled Fed assembly on Mar. 17-18. The CME FedWatch device reveals round 80% likelihood of one other 50 foundation factors easing on the subsequent assembly two weeks later.

The Fed's goal fee is now between 1% and 1.25%.

However some economists and strategists mentioned financial coverage instruments resembling rates of interest could not do a lot to assist the worldwide economic system climate shocks from the coronavirus illness, which is also called COVID-19.

"The thought is deeply ingrained in monetary markets that, when there's a main international financial downturn, central banks rapidly come to the rescue with aggressive coverage fee cuts," analysts from Japanese financial institution Nomura wrote in a Thursday...