Emergency rate cut in US fails to calm investors spooked by coronavirus; AMP chief economist Shane Oliver warns of economic contraction later this year

The US Federal Reserve has cut its main interest rate by half a percentage point, in an emergency move to counter the rapidly spreading coronavirus. 

The rate cut underscores the seriousness of the crisis and follows yesterday's 0.25 percentage point reduction by Australia's Reserve Bank. T

The action by America's central bank comes as economists wait on the latest official GDP data out later this morning which is expected to confirm a slowing economy. 

ABC's Peter Ryan analyses the central bank intervention.