The Federal Reserve cut rates 50 basis points to 1.00 – 1.25% on Tuesday, March 3rd, 2020, in an attempt to give the U.S. economy a jolt. This cut comes after concerns about the coronavirus outbreak and is the first unscheduled and biggest one-time emergency rate cut since 2008.
The fundamentals of the U.S. economy remain strong, and the Central Bank said in a statement that “the coronavirus crisis poses evolving risks to economic activity.” The Fed Chairman, Jerome Powell, also stated that financial markets are functioning normally, the economy continues to perform well, and that he expects the U.S. to fully recover after the outbreak ends.
The Central Bank also noted in its statement that the committee is closely monitoring coronavirus developments and their implications on the economy.
