Dow slides 310 points as US economy posts largest contraction in history - Business Insider

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Dow slides 310 points as US economy posts largest contraction in history

Thursday's busy session follows a similarly eventful trading day. Major indexesafter the Federal Reserve held interest rates near zero and indicated it would use all of its policy tools to facilitate a full economic recovery. Jerome Powell noted that a rise in virus infection rates was already dragging on the economic rebound, and hinted at forward guidance possibly being used for further easing efforts in the future.

"With rates already so low, monetary policy is becoming less effective at stimulating the economy," Seema Shah, chief strategist at Principal Global Investors, said. "Policymakers can soften a downturn, but ultimately, they do not have the power to prevent it."

 

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