OFF-CYCLE FED CUT
What you need to know
It’s been a volatile ride for markets so far this year, driven by coronavirus fears and potential market implications. Early signs of risk-off behavior first appeared in Chinese equities around late January, then quickly spread to other markets. In response to increasing economic risks, the Federal Reserve cut interest rates ahead of the regularly scheduled March meeting and indicated a willingness to provide further accommodation as appropriate. The impact from the coronavirus hasn’t fully emerged in key data releases yet, but world leaders and investors alike will certainly be watching closely. That said, it’s important to recognize that final implications may not be fully understood or reflected in economic reports for some time until containment of the outbreak is achieved.