FXStreet reports that the Fed has cut the fed funds target 50bps to 1.00-1.25% as COVID-19 has sparked a dramatic tightening in US financial conditions. Analysts at ANZ Research expect further easing, as US economic activity is expected to slow sharply.

"GDP is set to slow sharply in the next six months, with growth set to contract in Q2. We expect growth of 1.4% in 2020."

"CPI inflation is forecast to rise by 1.7%, with COVID-19 weakening inflation pressure, as spending slows."

"The FOMC to cut by funds rate by additional 75bps."

"Financial conditions have tightened as fear drives heightened volatility. In this environment, the Fed needs to do what it can to support financial conditions."