The U.S. Federal Reserve slashed the key interest rate to virtually zero on Sunday, announcing emergency measures to ease the economic effects of the coronavirus pandemic.

The Fed cut its benchmark interest rate by a full percentage point to a range of zero to zero-point-25 percent, making its second emergency rate cut in less than two weeks.

The Fed pledged to keep the rate there "until it is confident that the economy has weathered recent events."

It also said it will increase its bond holdings by at least 700 billion dollars, noting that the coronavirus outbreak has harmed communities and disrupted economic activity in many countries including the U.S. 

The surprise measures came ahead of the Federal Open Market Committee's regular meeting set for Tuesday.