Federal Reserve Cuts Rates by Half a Percentage Point to Help Fight Coronavirus Slowdown
Posted on 03/03/2020
The Federal Reserve cut interest rates by half a percentage point in the wake of concerns that the novel coronavirus (COVID-19) outbreak could damage the U.S. economy. This is the first unscheduled, emergency rate cut since December 2008. In addition, this is the biggest one-time cut since then.
The new benchmark interest rate is 1% to 1.25%.
March 03, 2020
Federal Reserve issues FOMC statement
For release at 10:00 a.m. EST
The statement reads, “The fundamentals of the U.S. 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 by 1/2 percentage point, to 1 to 1‑1/4 percent. 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.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles.”
Keywords: Federal Reserve System.