Federal Reserve announces its first emergency rate cut since the financial crisis
The Federal Reserve slashed interest rates by half a percentage point on Tuesday in the wake of concerns that the coronavirus outbreak could damage the US economy.
It was the first unscheduled, emergency rate cut since 2008. It was also the biggest since one-time cut since then. The new benchmark interest rate is 1% to 1.25%.
The Dow Jones Industrial Average rose 172 points, or 0.6% as of 10:10 a.m. Eastern time. It had been down as much as 356 points shortly before the announcement.
The Dow surged 5% Monday in anticipation of moves by the Fed and other central banks to support the global economy following the worst week for stocks since the financial crisis of 2008.