Coronavirus fears drive Fed to cut rates mid-cycle
WEEKLY MARKET COMMENTARY |
In response to growing concerns about the economic fallout from COVID-19, on March 3, the Federal Reserve (Fed) cut their policy benchmark rate by 50 basis points ahead of the regularly scheduled mid-March meeting, leaving the target range at 1.00-1.25 percent. While some were surprised by the cut, the Fed and other central banks had telegraphed such a move in recent days. Just before the announcement, Chairman Powell and other U.S. officials met with the G7 and issued a general statement that all parties are prepared and willing to act as necessary to support the market.