Fed Slashes Interest Rates - Range Now Sits Between 1% and 1.25%

Due to fears of a downturn due to the coronavirus outbreak, the Federal Open Market Committee lowered the benchmark interest rate to a range of 1% to 1.25%. On the heels of the announcement, the S&P 500 rose by over 1%. The most recent rate cut occurred in late October, when the Fed lowered the benchmark interest rate to a range of 1.5% to 1.75%. At that time, Chairman Powell indicated that the Fed did not have plans to cut the rate further in the near term, but recent stock market declines due to the coronavirus outbreak caused the Fed to reevaluate. Read more.