Fed Cuts Benchmark Rate a Half Point on Coronavirus Risks

The transcript discusses the Federal Reserve's emergency rate cut by 50 basis points, a move not seen since 2008 during the financial crisis. The Fed's decision aims to address economic risks posed by the coronavirus and support employment and price stability. The committee's unanimous decision reflects a proactive approach to stabilize markets, although its effectiveness remains uncertain. The Fed will continue to monitor economic developments and adjust its actions as needed.

When was the last time before 2020 that the Federal Reserve made an emergency rate cut?

• 2008

• 2010

• 2015

• 2001

What was unusual about the Federal Reserve's announcement of the rate cut?

• It was made on a weekend

• It was announced after the markets opened

• It was leaked to the press beforehand

• It was done without a press conference

What was the primary reason given by the Federal Reserve for the rate cut in 2020?

• Trade war concerns

• Rising inflation

• Coronavirus posing risks to economic activity

• Political pressure

By how much did the Federal Reserve lower the federal funds rate in this decision?

• 0.25%

• 0.5%

• 1%

• 0.75%

How did the Federal Open Market Committee vote on the rate cut decision?

• No formal vote

• Unanimous decision

• Split decision

• Majority decision