During the 2020 COVID-19 market crash, the U.S. Federal Reserve set its target federal funds rate at 0% to 0.25% in March. The emergency move returned the target range to the level used during the aftermath of the 2008 financial crisis.
The Federal Open Market Committee first cut the range by half a percentage point on 3 March 2020. On 15 March, it cut the range by a full percentage point to 0%–0.25% as the pandemic disrupted travel, employment, supply chains, and business activity.
The rate cuts accompanied other emergency measures, including large-scale asset purchases, lending facilities, and actions intended to keep credit markets functioning. U.S. stock indexes had already fallen sharply as investors assessed the speed and economic consequences of the outbreak.
The federal funds target is a range rather than a single rate. That distinction matters: the answer identifies the official target range announced by the Federal Reserve, not a particular overnight market transaction.