Fed Slashes Interest Rate by Half a Percentage Point Amidst Coronavirus Concerns

Washington, DC—As coronavirus concerns grow domestically and internationally, the Federal Reserve cut the interest rate by 50 basis points today.

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

President Trump commended the Fed for rate cut, but asked for more.

“It is finally time for the Federal Reserve to LEAD. More easing and cutting!” said Trump in his tweets.  “The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA.”