Fed used "most powerful tool" too soon by cutting rates, investors say

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Fed used "most powerful tool" too soon by cutting rates, investors say

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(190502) -- BEIJING, May 2, 2019 (Xinhua) -- U.S. Federal Reserve Chairman Jerome Powell attends a press conference in Washington D.C., the United States, on May 1, 2019. (Xinhua/Ting Shen) | Ting Shen/Xinhua News Agency/PA Images

The Federal Reserve cut interest rates two weeks before its regularly scheduled meeting in an attempt to boost confidence of markets severely impacted by Covid-19 fears. Market participants, however, tell GlobalCapital they worry that the bank is spending its ammunition too quickly to remedy a complicated issue that requires a medical solution, not a monetary one.

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