Trump suggested Tuesday a 0% payroll tax rate that could last until the end of the year. However, the timing of such policies being implemented remains uncertain.
Trump’s comment came as the number of coronavirus cases around the world total more than 100,000, according to data from Johns Hopkins University. In the U.S. alone, more than 1,000 cases have been confirmed. This increase in cases added to fears of a global economic slowdown.
Oil prices fell along with Treasury yields. U.S. crude fell more than 3% to $33.17 per barrel. Meanwhile, the benchmark 10-year note yield traded at 0.7%.
Central banks have also taken action to curb slower economic growth. The Bank of England on Wednesday cut its benchmark rate by 50 basis points to 0.25%.The move follows a 50 basis-point rate cut by the Federal Reserve earlier this month.