WASHINGTON: The US Federal Reserve cut interest rates on Tuesday in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus.
In a statement, the central bank said it was cutting rates by a half percentage point to a target range of 1.00% to 1.25%.
“The fundamentals of the US economy remain strong. 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,” the Fed said a statement.
The decision was unanimous among policymakers.
The Fed’s decision to cut interest rates before its next scheduled policy meeting on March 17-18 reflects the urgency with which the Fed feels it needs to act in order to prevent the possibility of a global recession.
US stocks indexes surged on Tuesday after the Federal Reserve cut interest rates.
At 10:02 am ET, the Dow Jones Industrial Average was up 319.24 points, or 1.20%, at 27,022.56, the S&P 500 was up 38.33 points, or 1.24%, at 3,128.56.
The Nasdaq Composite was up 100.59 points, or 1.12%, at 9,052.75. – March 3, 2020, Reuters
