Federal Reserve Announces Emergency Rate Cut Amid Coronavirus Outbreak

In a surprise move, the Federal Reserve cut interest rates by half a percentage point yesterday. This is the first unscheduled emergency slash since the 2008 financial crisis. The decision stemmed from the risk posed to the economy by the coronavirus after the stock market saw significant drops and the Dow experienced it’s largest point drop in a single day. And rates are predicted to be cut even more as we move forward. Federal Chairman Jerome Powell said, “I know the U.S. economy is strong and we’ll get to the other side of this and return to solid growth and a solid labor market as well.” So far, the coronavirus has claimed the lives of more than 3,200 people and infected upwards of 92,000 people worldwide. In the U.S., the number of cases jumped to 126 with nine deaths. Italy just announced they are seriously considering closing all schools and universities for two weeks in an attempt to contain their rapid outbreak.