The Federal Reserve, in a shocking move, held an emergency meeting and announced a rate cut of 50 basis points on Tuesday, March 3.
The surprise decision was designed to cushion the economic impact of the coronavirus. It came just hours after a meeting of G-7 finance ministers and central bankers.
"My colleagues and I took this action to help the U.S. economy keep strong in the face of new risks to the economic outlook," said Powell, who added that "the fundamentals of the U.S. economy remain strong."
But the rate cut, which came at 10 a.m. Eastern, just 30 minutes after the markets opened, may come off to some as irresponsible given the G-7 leaders' decision to "stand ready."
Steve Skancke, chief economic advisor at Keel Point, said that the Fed expected the market to react poorly to the G-7's lack of action, which led the Fed to "seize the moment" and try to head off a "down market debacle."
Watch the full video for more.
Online real estate platform CrowdStreet delivers investors a new way to diversify their portfolios with real estate. Individual investors can use CrowdStreet’s leading online marketplace to connect with a wide array of commercial real estate opportunities and projects to make investing in real estate easy! Download the Real Estate Guide.
Catch up on the Latest Videos on TheStreet!
- Dow Surges Over 1,200 Points: What Moved Stocks Higher Monday
- Stocks to Consider if There Is a Coronavirus Pandemic
- A Legendary Investor Reveals How to Play the Markets Now
- Jim Cramer on Jack Welch’s Legacy
- Is Now the Time to Panic About Your 401k?
- Gold Is Rising on Coronavirus Fears - Why It Can Climb Even Higher
- The Future Lies in Bitcoin Says Shark Tank’s Robert Herjavec
- TurboTax Webinar: Tax Tips for Freelancers and Gig Workers
- TheStreet Explains: What is EBITDA and Why Does it Matter?
- Retirement Daily: Don’t Retire With Debt: It’s Bad for Your Well-Being