The United States’ Federal Reserve slashed the interest rate on Sunday by a full percentage point to nearly zero. That was the second time in 15 days it dropped the interest rate due to the coronavirus pandemic. It also launched a new round of quantitative easing, injecting US$700 billion into the market. After the Fed's interest rate cut, futures on the Dow Jones Industrial Average fell more than 1,000 points.
Taiwan’s finance minister, Su Jain-Rong, said the Fed’s interest rate cut was more than expected. He said it is a good time to observe how international cash flows will move as a result of the Fed’s move. Su said officials are keeping a close watch on global markets and what measures governments will use to respond to the financial challenges.
Taiwan’s stock market dropped 786 points or 7.5% on Monday on news of the interest rate cut. He said Taiwan will be ready to use the national stabilization fund to help stabilize Taiwan’s stock market if necessary.
Minster Su also said that companies impacted by the new coronavirus outbreak can pay their taxes a year after they file their taxes.