Fed Chairman Jerome Powell

The FOMC said in a media release yesterday:

"Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. This action will help support economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective."

In his press conference yesterday [hear YouTube audio, below], Fed Chairman Jerome Powell noted that the hospitality and tourism industries are already feeling adverse effects of measures being taken to limit the spread of COVID-19.

The S&P 500 dropped 8% on opening this morning, resulting in the third trading halt in the last 6 trading days.