US Fed cuts interest rates to near zero in response to Coronavirus crisis. Mark Matthews of Bank Julius Baer and Jahangir Aziz, head- emerging markets economic at JPMorgan shared their views and outlook on the same.

“Previous emergency cuts were also in crisis and they certainly didn’t mark the bottom in the market. Fed cannot cut interest rates any more. So I suppose there is a sense that they have used all their bullets,” said Matthews.

“The global market matters a lot and the Indian market is going to react and take global cues. What has spooked the market, at least the Asian market so far, is that the Fed seems to have used its last bullet...What we need to do is to step back and understand that monetary policy cannot stop the virus from spreading. What it needs is a public health crisis at this point in time and what that requires is a public health solution,” Aziz said.