The US Federal Reserve announced on the 3 day that it will cut the target rate of the federal funds rate by 50 basis points to the level of 1-1.25%, which is the first time the Fed has cut interest rates this year.

The Fed said in a statement the same day that the fundamentals of the US economy remain strong, but the new crown pneumonia epidemic poses a constant risk of economic activity. Faced with these risks, the Fed decided to reduce the target range of the federal funds rate in order to achieve its full employment and price stability goals.

The Fed also said it is closely monitoring developments and its impact on the economic outlook, and will take appropriate action to support the US economy with its policy tools.

The recent spread of the new crown pneumonia epidemic in many countries around the world has raised concerns about the performance and economic growth of the market, and US stocks have also suffered a rare setback. Investors in the financial market have sharply increased their interest rates on the Federal Reserve. But many analysts pointed out that the rate cut is not to respond to the impact of the epidemic "specific drugs." At present, the global economy is closely linked, and the industrial chain is distributed across the country. The impact of the epidemic on the economy is more reflected in the supply field than in the demand area, thus ensuring supply is more important.