Brandishing an array of financial weapons, the Federal Reserve announced extraordinary action Sunday to try to blunt the heavy damage the coronavirus outbreak has begun to inflict on the U.S. economy. The surprise intervention was an acknowledgement by the Fed that the economy seems suddenly on the brink of recession and a signal that it will do all it can to minimize the blow to households, companies and the economy. By slashing its benchmark short-term rate and pumping hundreds of billions of dollars into the financial system, the Fed’s moves recalled the emergency action it took at the height of the financial crisis.
