The Federal Reserve today announced an emergency rate cut of half a percentage point in response to the growing economic threat from the novel coronavirus. The new benchmark interest rate range is 1.00 percent to 1.25 percent.

“The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity,” the Fed said in a statement. “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.”

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