Federal Reserve Announces Interest Rate Cuts Amid Coronavirus Outbreak

The Federal Open Market Committee has reduced interest rates by 0.5% to a target range of 1.25% in response to the coronavirus outbreak. This decision aims to support the US economy amidst new risks and to prevent financial tightening. The outbreak has significantly affected businesses, especially in Asia, and caused global market declines. The committee hopes the rate cut will boost confidence among households and businesses.

What prompted the Federal Open Market Committee to cut interest rates?

• The coronavirus outbreak

• An increase in oil prices

• A decrease in unemployment

• A rise in inflation

By how much did the Federal Reserve cut the interest rates?

• 1% percentage points

• 0.5% percentage points

• 0.25% percentage points

• 1.5% percentage points

Which region's businesses are particularly affected by the coronavirus outbreak?

• Asia

• Africa

• North America

• Europe

What was one of the impacts of the coronavirus on global markets?

• Rise in global trade

• Increase in stock prices

• Stability in the Dow

• Tumble in the Dow

What does the committee hope to achieve with the rate cut?

• Decrease in government spending

• Boost in household and business confidence

• Tightening of financial conditions

• Increase in taxes