The US Federal Reserve announced an emergency key rate cut of 50 points in a move to protect the economy from the risks of the spread of the Corona virus.
According to Arabia Net, the Federal Reserve said in a statement on its website that the fundamentals of the American economy remain strong, however, that the coronavirus poses growing risks to economic activity.
In light of these risks and in support of achieving employment targets and price stability, it was decided to lower the target interest rate range.
The Fed will closely monitor developments and their implications for the economic outlook, use their tools and work as needed to support the economy.
This is the first time that the Federal Reserve has cut interest rates outside its usual schedule of policy meetings since the financial crisis in 2009.
