The Federal Reserve on Tuesday cut interest rates amid concern about the potential economic toll of the coronavirus outbreak.
The Federal Open Market Committee (FOMC), which sets Fed interest rates, announced it would cut its baseline interest rate range by 0.5 percent to a 1 to 1.25 percent spread.
“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 FOMC said in a Tuesday statement.