The US central bank has cut interest rates in an emergency move to help shield its economy from the impact of the "evolving" coronavirus crisis.
The Federal Reserve, which had hinted that support was imminent following steep stock market falls last week, said it was taking half a percentage point off its federal funds rate to a new target range of 1% to 1.25%.
Sky's economics editor Ed Conway suggested that the measure could prompt other central banks to follow suit as worries grow that efforts to contain the outbreak will cripple global growth this year.
The Fed was not due to meet, let alone make a decision on rates, for a fortnight. The last time it cut rates between meetings was in 2008 - at the height of the financial crisis.
The surprise announcement helped stock markets in the US and Europe pile on value that was lost during the panic of last week initially, though caution later set in on Wall Street as the benefits of the cut for the economy were seen as negligible.
Financial analysts suggested the market reaction reflected doubts that a rate cut would boost demand in an environment of government-inspired restrictions to halt the spread of a virus.
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