The Federal Reserve announced an emergency cut of 50 basis points in its key interest rate to protect the economy against what it called the "evolving risks" of the coronavirus outbreak.
"The fundamentals of the U.S. economy remain strong," the Fed said in a statement on its website. "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.
It's the first time the Fed has cut rates outside its normal schedule of policy meetings since the financial crisis in 2009.