In an extraordinary attempt to contain the coronavirus's economic fallout, the Federal Reserve slashed interest rates on Tuesday as policymakers unanimously approved their biggest one-time cut — and first emergency rate move — since the depths of the 2008 financial crisis. Stocks in the United States rallied for about 15 minutes after the rate cut, but worries about the Fed's impotence in the face of economic risks from the coronavirus quickly fueled a market sell-off. By late Tuesday, stocks were sharply lower and bond yields had plummeted to previously unthinkable lows as investors sought a safe place to park their money. The S&P 500 fell about 2.8 percent, undoing some of Monday's 4.6 percent surge. The yield on 10-year Treasury notes dipped below 1 percent. Interest rates are now set in a 1 percent to 1.25 percent range, and Jerome H. Powell, the Fed chair, signaled that further moves were possible. "The virus and the measures that are being taken to contain it will surely weigh on economic activity, both here and abroad, for some time," Mr. Powell said at a news conference, adding the Fed was "prepared to use our tools and act appropriately, depending on the flow of… Read full this story
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