The Federal Reserve cut interest rates today by half percentage point amid concern the coronavirus outbreak could threaten the US economy. It is the first emergency move like this since 2008.
“The fundamentals of the U.S. economy remain strong,” a statement from the Federal Reserve said. “However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 to 1‑1/4 percent.”
It continued, “The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.”
An interest rate cut was widely expected.