--- description: The U.S. Federal Reserve delivered an emergency half-percentage point interest rate cut Tuesday in a bid to protect against the coronavirus. title: U.S. Federal Reserve Cuts Interest Rate by Half-Percentage Point Amid Coronavirus Fears image: https://static.time.com/v3/assets/bltea6093859af6183b/bltc37b5010a4aa93da/698a0b0edb2987268426508a/federal-reserve-coronavirus.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [U.S.](/section/us/) ## U.S. Update your preferences in [Account Settings](/account/preferences/) Close * [COVID-19](/tag/covid-19/) ## COVID-19 Update your preferences in [Account Settings](/account/preferences/) Close # U.S. Federal Reserve Cuts Interest Rate by Half-Percentage Point Amid Coronavirus Fears by [Craig Torres / Bloomberg](/author/bloomberg/) ## Craig Torres / Bloomberg Update your preferences in [Account Settings](/account/preferences/) Close Mar 3, 2020 3:44 PM CUT  Close up of the Federal Reserve building with the eagle statue. Close up of the Federal Reserve building with the eagle statue.Getty Images by [Craig Torres / Bloomberg](/author/bloomberg/) ## Craig Torres / Bloomberg Update your preferences in [Account Settings](/account/preferences/) Close Mar 3, 2020 3:44 PM CUT (Bloomberg) — The U.S. Federal Reserve delivered an emergency half-percentage point interest rate cut Tuesday in a bid to protect the longest-ever economic expansion from the [spreading coronavirus](https://time.com/5783771/covid-19-us-cases/ "undefined"). “The coronavirus poses evolving risks to economic activity,” the Fed said in a statement. “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.” _Sign up for our daily coronavirus newsletter by clicking_ [_on this link_](https://cloud.newsletters.time.com/coronavirus?source=article "undefined")_, and please send any tips, leads, and stories to_ [_virus@time.com_](mailto:virus@time.com "undefined")_._ The central bank also said it 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 for the emergency cut to a range of 1% to 1.25% was unanimous. The Fed also said in the statement that the “fundamentals of the U.S. economy remain strong.” The Fed acted hours after Powell and finance chiefs from the Group of Seven nations said they would “use all appropriate policy tools to achieve strong, sustainable growth and safeguard against downside risks.” That echoed a [statement](https://www.federalreserve.gov/newsevents/pressreleases/other20200228a.htm "undefined") Powell made on Friday. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/5794462/federal-reserve-cuts-coronavirus/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/5794462/federal-reserve-cuts-coronavirus/"},"headline":"U.S. Federal Reserve Cuts Interest Rate by Half-Percentage Point Amid Coronavirus Fears","datePublished":"2020-03-03T15:44:02.000Z","dateModified":"2026-02-24T08:22:40.805Z","description":"The vote for the emergency cut to a range of 1% to 1.25% was unanimous","url":"https://time.com/5794462/federal-reserve-cuts-coronavirus/","keywords":["COVID-19","Federal Reserve","onetime"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/bltc37b5010a4aa93da/698a0b0edb2987268426508a/federal-reserve-coronavirus.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Craig Torres / Bloomberg"}],"articleSection":"U.S.","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/bltc37b5010a4aa93da/698a0b0edb2987268426508a/federal-reserve-coronavirus.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"Federal Reserve building in Washington DC, USA","caption":"Federal Reserve building in Washington DC, USA","creditText":"Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/us/","name":"U.S."}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/covid-19/","name":"COVID-19"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/5794462/federal-reserve-cuts-coronavirus/","name":"U.S. Federal Reserve Cuts Interest Rate by Half-Percentage Point Amid Coronavirus Fears"}}]}] ```