Fed sets tone for unconventional policy but markets want more

Singapore

WITH markets in crisis mode, the US Federal Reserve's aggressive move to slash its key interest rate by a whole percentage point to near zero early on Monday failed to offset the panic from tighter global border controls and collapsing consumer demand.

Many felt that the Fed's second emergency move in less than two weeks betrayed its sense of panic over a liquidity crunch, even as falling equities markets continued to reflect a lack of confidence in global leaders to contain the coronavirus pandemic.