The Federal Reserve estimated unemployment will be at 9.3% by the end of 2020.
The central bank said the effects of the outbreak will weigh on economic activity in the near term and pose risks to the economic outlook.
On Wednesday, just hours before the U.K. government will outline new spending plans, the Bank of England announced the cuts.
The U.S. government may need to spend its way out of a coronavirus-induced slowdown.
"A half a point is not going to cure anybody," said Karen Petrou, managing partner of Federal Financial Analytics.
2019 saw a major shift in monetary policy. Does that mean the Fed has been wrong about the economy for years?
Getting a loan in the early 1980s was a lot more expensive than today. That was the point.
Economists think another interest rate cut is on the way.
A survey from the National Association for Business Economics found members are bracing for the economy to slow.
Savers can be the first to lose when the Fed lowers the interest rate.