Market history · Central banks ·
The Fed's half-point cut before its scheduled meeting
On 3 March 2020 the Federal Reserve lowered its target range by half a percentage point, to 1–1.25%, citing evolving risks to economic activity from the coronavirus. The decision came before the committee's scheduled meeting later that month.
Markets did not settle: the cut was followed by a further emergency move to zero on 15 March, described elsewhere in this archive, and by the fastest bear market on record.
The takeaway
When policy has to move between meetings, the market is already focused on what the central bank may know.
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.