I coughed on the subway the other day and almost caused a stampede. Which is a fitting metaphor for the stock market this past week, except that the stampede really happened. Given the extraordinary circumstances, we’re dedicating most of today’s newsletter to the economic effects of the coronavirus outbreak so far, along with the usual top stories in business and tech for the week ahead. Stay safe, everyone. — Charlotte Cowles

Image Credit... Giacomo Bagnara

What’s Up? (March 1-7)

Coronavirus Hits Home

As new coronavirus cases fanned across the United States, the Federal Reserve announced a surprise interest rate cut in a sudden attempt to curb the economic fallout. It’s the first emergency cut (and the biggest) that the Fed has made since the 2008 financial crisis. Jerome H. Powell, the Fed chair, said that he was ready to take further action to bolster the economy if the markets kept nose-diving, and investors are expecting another cut later this month. But rates are already so low that the central bank is running out of room to slash them if things get worse. And the real problem is, fiscal policy cannot do much if factories are closed, workers are quarantined and consumers are scared to leave their homes.

The Buck Doesn’t Stop There

Containment costs money, and Congress rushed to pass an $8.3 billion bipartisan spending bill to fight the virus on Thursday. The funds will be used to expand health care access to the elderly, who are dying at a higher rate from the illness, and to help provide medical supplies for state and local health agencies — like testing kits, which are still disturbingly scarce. The Centers for Disease Control and Prevention has yet to make them widely available in all areas, and they can take days to process. It is also unclear how affordable they will be for people without health insurance.