Underscoring how grave the central bank views the fast-evolving situation, it was the first rate cut outside of a regularly scheduled policymaker meeting since 2008 at the height of the financial crisis.

The pathogen, which originated in China, causes respiratory illness that has been fatal in an estimated 2% of cases, and governments and companies have shut schools and restricted travel and large gatherings in response, crimping factory output in China and disrupting production of goods worldwide.

All three major U.S. stock market indexes closed nearly 3% lower, while the yield on the 10-year U.S. Treasury note dropped below 1% for the first time ever.

President Donald Trump, arriving at the White House as U.S. markets closed, told reporters he had not seen the market’s drop on Tuesday and was focused on the federal coronavirus response.

Traders believe the Fed is not done. Futures tied to the Fed’s policy rate were pricing in another rate cut by June. Fed policymakers will provide their own rate path expectations, along with forecasts for economic growth, at the end of their March 17-18 meeting.