“The fundamentals of the US economy remain strong,” Powell said in a statement amid an ongoing sell-off in global stock markets.
“However, the coronavirus poses evolving risks to economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy.”
The three-sentence statement comes in response to soaring market expectations that the Fed will cut interest rates at its upcoming March meeting, and flags the Fed’s willingness to move if the health emergency continues to spread and impact the economy.
After a weeklong and accelerating market sell-off, some analysts were waiting for such a signal from Powell.
Until the chairman spoke Fed officials had largely focused on the fact that the virus outbreak had not seemed to dent US economic data, and that they expected the outbreak to be contained and any economic damage to be modest.
- The Latest: Powell says Fed working on inflation policy
- Colin Powell says Trump's foreign policy 'is in shambles,' Republican Party needs to 'get a grip'
- Tories would surprise even Enoch Powell, says Kenneth Clarke
- Deported Child Sex Offender Caught near Texas School After Crossing Border, Say Feds
- Call The Modwife! Helen George, Jennifer Kirby and Leonie Elliott wow in retro 60s dresses... as creator Heidi Thomas says fans have 'no need to worry' that the show will end soon
- BoE's Carney says finance must act faster on climate change
- Powell scores 31 as Seton Hall edges Providence
- 4 Goa Congress Leaders Resign, Say CAA Needs to be Welcomed, Not Opposed
- PM Modi hits out at Congress for opposing CAA, says Opposition doesn't speak against Pakistan
- Markets remind the Fed that it can’t win
- The Fed is coming to the rescue. But there's no emergency
- View: Why it will be a boring year for US Fed
- US Fed says it won't raise interest rates this year, but that didn't boost shares
- Trading a dove for two hawks: The Fed's 2020 voters
- Powell scores 30 as Seton Hall routs Georgetown 90-74
- Fed sees small take-up of repo, rates fall for year-end
- NY Fed's Williams says economy, monetary policy in a good place: CNBC
- UPDATE 1-Fed may need new approach to boost inflation, Daly says
- Dear C-in-C, why we still need Lt Gen TY Buratai
- Explosive documentary Leaving Neverland claims Michael Jackson 'gave young boys JEWELRY in exchange for sex acts and staged a full mock wedding before ditching them for younger victims'
Powell says US Fed ready to act as needed have 396 words, post on www.news.com.au at February 29, 2020. This is cached page on Konitono.News. If you want remove this page, please contact us.