Federal Reserve responds to coronavirus, cuts benchmark rate by half a point

The Federal Reserve on Monday morning cut its benchmark rate by half a percentage point in an attempt to offset economic fallout resulting from the spread of coronavirus.

The cut is the first to occur in between scheduled policy meetings since the 2008 financial meltdown. It leaves the federal funds rate between 1% and 1.25%.

Further stimulus moves are not off the table for the central bank. “The committee is closely monitoring developments and their implications for the economic outlook and will use its tool and act as appropriate to support the economy,” read the statement from the Fed.

The rate cut was unanimously approved. Federal Reserve Chairman Jerome Powell is expected to speak on the matter at 11 a.m.