(FOX BUSINESS) The Federal Reserve has decided to make an emergency rate cut to cushion the U.S. economy from the fallout of the coronavirus outbreak. Stocks soared in response to the news.

The central bank lowered its fed funds rate by 50 basis points to a range between 1 percent and 1.25 percent.

“The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. In light of these risks and in support of achieving its maximum employment and price stability goals, the Federal Open Market Committee decided today to lower the target range for the federal funds rate by 1/2 percentage point, to 1 to 1‑1/4 percent. The Committee is closely monitoring developments and their implications for the economic outlook and will use its tools and act as appropriate to support the economy.”