The US central bank has slashed interest rates in response to mounting concerns about the economic impact of the coronavirus.
The Federal Reserve lowered its benchmark rate by 50 basis points to a range of 1% to 1.25%.
The emergency move comes after the G7 group of finance ministers pledged action earlier on Tuesday.
Federal Reserve Chair Jerome Powell said the US economy remains strong but it is difficult to predict the "magnitude and persistence" of the effects of the spreading virus.
"The virus and the measures that are being taken to contain it will surely weigh on economic activity for some time, both here and abroad," he said at a press conference in Washington.
"We don't think we have all the answers. But we do believe that our action will provide a meaningful boost to the economy."
The last time the bank made an interest rate cut at an emergency meeting was during the global financial crisis of 2008.
