The Federal Reserve announced Tuesday that it has cut interest rates by half a percentage point in an effort to boost the U.S. economy due to the continuing spread of the coronavirus.
“The fundamentals of the U.S. economy remain strong,” the Fed said in a statement on Tuesday. “However, the coronavirus poses evolving risks to economic activity.”
The cut, which amounts to a half percentage point, lowered the current target range to between 1% and 1.25%, which is nearing historic lows. The decision was unanimous among the Federal Open Market Committee members. U.S. stocks fluctuated after the emergency rate cut on Tuesday.
After some early advances the SP 500 traded lower on the news, selling the fact, and currently sits in range midday on Tuesday.
Euro is strong against the dollar and now buys 1.11 bucks.