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.

How has the coronavirus outbreak affected businesses, particularly in Asia?

What does the committee hope to achieve by cutting interest rates?