"Consistent with its statutory mandate, the [Federal Open Market] Committee seeks to foster maximum employment and price stability. The effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent," the statement read on Sunday.

Later in the day, US President Donald Trump welcomed the Federal Reserve's decision to lower the interest rate.

"That is really good news. That is really great for our country ... We are very happy, I have to say this, I am very happy," Trump said at a press conference, commenting on the Federal Reserve's move.