Live updates: Fed cuts interest rate; G-7 finance chiefs stop short of announcing specific actions to contain coronavirus fallout

With the coronavirus spreading unpredictably and Americans bracing for an increasing impact at home, the Federal Reserve made an emergency interest rate cut Tuesday, slashing the benchmark U.S. rate by half a percentage point.

The central bank has not made an emergency move like this since late 2008. It was also a sign that global central banks are prepared to act to contain the economic fallout from the coronavirus. The move came after President Trump, in a tweet, called for a “big” interest rate cut by the Federal Reserve “to make up for China’s coronavirus situation and slowdown.”

The markets quickly rallied after the Federal Reserve announced the decision. The rebound came after a volatile morning, with futures pointing positive and then staging a U-turn. Continue reading.