(WASHINGTON) — The Federal Reserve announced a surprise rate cut of half a percentage point on Tuesday, citing the “evolving risks” of coronavirus to the U.S. economy.
“The fundamentals of the U.S. economy remain strong,” a statement from the Federal Reserve said. “However, the coronavirus poses evolving risks to economic activity. 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.”
It continued, “The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.”
This is a developing story. Please check back for updates.
Copyright © 2020, ABC Audio. All rights reserved.