Fed Cuts Interest Rates In Emergency Response To Coronavirus

Federal Reserve officials have cut a key interest rate by a half percentage point, in an emergency attempt to shore up the economy at a time when the coronavirus threatens to slow growth.

"The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity," the central bank said a statement Tuesday morning.

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The Fed's decision to cut rates was unanimous.

The move comes at a time of growing concern about the impact the virus is having on the global economy. Companies around the world are shutting down production and canceling travel in response.

Stock prices had their worst week since the 2008 financial crisis last week, with the Dow Jones Industrial Average falling by 12.5%, although it recouped part of its losses on Monday.

The Fed left open the possibility of further rate cuts down the line, saying it was monitoring developments and would act as needed to shore up growth. [Copyright 2020 NPR]