It's also the first time the central bank has cut its key rate between policy meetings since the 2008 financial crisis, and it is the largest rate cut since then. The move, which the Fed's policy committee backed unanimously, lowered the range of its benchmark rate to a range of 1 percent to 1.25 percent. The Dow Jones Industrial Average, which had been down as much as 356 points shortly before the Fed's announcement, pared its losses later. The Fed's announcement of a steep rate cut signaled its growing concern that the coronavirus, which is depressing economic activity across the world, poses an escalating threat and could trigger a recession. He said this may suggest that the Fed is leaning toward an additional rate cut, perhaps as soon as its next scheduled policy meeting in two weeks.

Source: The Standard March 03, 2020 16:07 UTC