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Fed Cuts Half Point in Emergency Move Amid Spreading Virus

  • Central bank makes first inter-meeting reduction since 2008
  • Powell explained decision in press conference after statement
Bloomberg business news
WATCH: Powell says the FOMC judged that risks to the outlook have changed materially.Source: Bloomberg
Updated on

The Federal Reserve slashed interest rates by half a percentage point in the first such emergency move since the 2008 financial crisis, amid mounting concern that the coronavirus outbreak threatens to stall the record U.S. economic expansion.

The rate cut, which came between the central bank’s regularly scheduled meetings, was announced hours after Group of Seven finance chiefs held a rare teleconference to pledge they’d do all they can to combat the fast-moving health crisis.