Emergency cut from the FOMC
The Fed says the virus poses evolving risks and the vote was unanimous. The statement said the FOMC is closely monitoring developments and act as appropriate. They also said the fundamentals of the US economy remain strong.
Powell will hold a press conference at 11 am ET (1600 GMT).
The S&P 500 has turned a 30 point decline into a 45-point gain. Gold is also climbing and the US dollar is falling against commodity currencies.
Here is the initial jump in US stocks:
Here is the full-text of the statement:
The fundamentals of the U.S. 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 by 1/2 percentage point, to 1 to 1‑1/4 percent. The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.
From Frederik Ducrozet, here is the history if inter-meeting moves:
- Oct. 1998 (25bp)
- Jan. 2001 (50bp)
- Apr. 2001 (50bp)
- Sep. 2001 (50bp)
- Aug. 2007 (50bp discount rate cut)
- Jan. 2008 (75bp)
- Oct. 2008 (50bp coordinated cut)
- Mar. 2020 (50bp)
Will it last? From Katie Martin:
