Washington D.C. [USA], Mar 4 (ANI): The US Federal Reserve on Tuesday (local time) lowered the interest rates by half a percentage point as coronavirus poses "evolving risks" to economic activity in the country. It was the first unscheduled emergency rate cut since 2008, and it also marks the biggest one-time cut since then. The new benchmark interest rate is a range of between 1 per cent and 1.25 per cent, CNN reported. The central bank in a statement said that the coronavirus poses 'evolving risks to economic activity' although the fundamentals of the US economy remain strong.Jerome Powell, Chairman of the Federal Reserve, in a press conference, said: "We saw the risk to the outlook to the economy and chose to act." He added that the financial markets are functioning normally, the economy continues to perform well, and he expects the US to fully recover after the outbreak ends.Referring to the potential economic damage coronavirus could cause, Powell said: "I don't think anybody knows how long it will be. I know the US economy is strong and we'll get to the other side of this and return to solid growth and a solid labour market as well."Adding that a rate cut won't cure infections or fix broken supply chains, Powell said that it will help boost household and business confidence. While lauding the rate cut, President Donald Trump said that the Fed needed to cut further."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!," Trump said in a tweet. Coronavirus first originated in the Chinese city of Wuhan and has since then spread to several countries across the world. The World Health Organisation has declared the outbreak an international health emergency. (ANI)
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