Fed cuts interest rates over coronavirus concerns
The Federal Reserve Board announced Tuesday it was cutting interest rates by half a percentage point in response to concerns about how the coronavirus is affecting the economy.
"The fundamentals of the U.S. economy remain strong," but "the coronavirus poses evolving risks to economic activity," the Fed said in an unscheduled statement. Its benchmark funds rate now sits at 1 to 1.25 percent.
CNBC characterized the cut as an "emergency" measure since it came between the Fed's scheduled quarterly adjustments. This is the first emergency adjustment since the 2008 financial crisis. It comes after the stock market saw a dramatic fall last week, only to start to rebound on Monday.
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Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.
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