US Federal Reserve makes emergency interest rate cut

Central bank moves to protect economy from coronavirus outbreak

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• Rate cut leaves Wall Street guessing - Nils Pratley

The US Federal Reserve has slashed interest rates in an emergency move to protect the world's largest economy from the coronavirus outbreak, ramping up the global response as the disease spreads.

In a dramatic intervention as the G7 group of wealthy nations promised action around the world to protect jobs and growth amid the unfolding crisis, the US central bank said it was cutting interest rates by half a percentage point to a target range of 1% to 1.25%.

Related: US Federal Reserve's interest rate cut leaves markets in a dither | Nils Pratley

The G7 issued a statement saying wealthy nations would use "all appropriate policy tools" to tackle the economic fallout.

The UK government outlined contingency plans, including limits on police and fire service callouts.

Growing numbers of companies announced profit warnings and told staff to work from home.

Related: Banks issue emergency loans to UK firms hit by coronavirus crisis