Tackling coronavirus: Federal Reserve cuts rates by half a percentage point

The US Federal Reserve cut interest rates on March 3 in an emergency move designed to shield the world's largest economy from the impact of the coronavirus.

In a statement, the central bank said it was cutting rates by a half percentage point to a target range of 1.00 percent to 1.25 percent.

"The fundamentals of the US economy remain strong. However, the coronavirus poses evolving risks to economic activity.

In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate," the Fed said in a statement.

US President Donald Trump, however, said he expects more from the Federal Reserve.

"The Federal Reserve must further ease and, most importantly, come into line with other countries/competitors," Trump tweeted.

The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!

— Donald J. Trump (@realDonaldTrump) March 3, 2020

The decision was unanimous among policymakers. The Fed's decision to cut interest rates before its next scheduled policy meeting on March 17-18 reflects the urgency with which the Fed feels it needs to act in order to prevent the possibility of a global recession.

Jerome Powell, Federal Reserve Chiarman, in a press briefing later, said the coronovirus outbreak  has disrupted economic activity in many countries.

"The impact of coronavirus on the economy is uncertain and requires a multi-faceted response. We will do our part to keep the US economy strong. We saw risks to the US economy because of the spread of the coronavirus," he said.

Powell also said they are in active discussions with central banks around the world, adding that the rate cut will provide a meaningful boost to the economy.