The US central bank, the Federal Reserve, has cut interest rates in response to the threat posed by Coronavirus and the associated illness Covid-19.
In a statement released 3 March by the Federal Open Market Committee (https://www.federalreserve.gov/newsevents/pressreleases/monetary20200303a.htm) the Fed stated:
"The fundamentals of the US 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."
The vote in favour of the move was overwhelming, with 10 votes in support: Jerome Powell, chair; John Williams, vice chair; Michelle Bowman; Lael Brainard; Richard Clarida; Patrick Harker; Robert Kaplan; Neel Kashkari; Loretta Mester; and Randal Quarles.
The FOMC consists of 12 voting members--the seven members of the Board of Governors; the president of the Federal Reserve Bank of New York; and four of the remaining 11 Reserve Bank presidents, who serve one-year terms on a rotating basis.