Global Economy –Rundown:
The Fed Chairperson, explained that its prompt decision prior to its already scheduled meeting for 18th March, 2020, was spurred by potential risk to the United State Economy, arising from the novel coronavirus. The recent move of the Fed, is being interpreted “as when the watcher becomes the watch”, as the Fed having its Apex Role as the coordinator of the economy, who dedicate the pace of the Economy, is now reacting to investors’ disposition to the potential market risk that is anticipated from the wild spread of the novel coronavirus. The empirical evidence suggested that the Fed relied on signals from Bond Market that already priced in an expectation for additional economy easing, this further surrenders the Apex Banks dominance on economic factors, which further pressured the Bank to respond to the perceived threats of the economy.
Domestic Economy –Rundown:
The amount of subsidy paid on Premium Motor Spirit by federal Government for the month of January, 2020 decline to N43.09billion from N55.58billion recorded for the previous month, this decline represent a 22.47% downward slide. According to PMS pricing templates and daily truck-out price benchmark for the month of January, 2020, put the average Expected Open Market Price at N171.27 per liter of PMS, which translate to an average subsidy of N26.27 per liter of PMS, compared to benchmark price of N145 per litre.