The United States Federal Reserve announced today it was cutting interest rates by 0.5%. Risks to the economy based on the spread of coronavirus precipitated the move.
An announcement by the Fed stated, “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.