- Federal Reserve chairman Jay Powell attempted to reassure companies and investors on Friday afternoon.
- As concerns about the corona virus escalated, Powell said the fundamentals of the US economy were still strong.
- But he signaled that the central bank would intervene if necessary.
- You can find more stories on the Business Insider homepage,
Federal Reserve chairman Jay Powell tried to calm companies and investors on Friday afternoon as concerns about the corona virus escalated further.
In a brief statement, Powell said the fundamentals of the US economy were still strong, but signaled that the central bank was open to a rate cut if necessary. Financial markets fell sharply this week when the government warned that COVID-19 respiratory disease was likely to spread to US communities.
"The corona virus poses an evolving economic risk," Powell said said, "The Federal Reserve is closely monitoring developments and their impact on the economic outlook. We will use our instruments and act appropriately to support the economy."
The Federal Open Market Committee, which set the policy, cut its base rate three times last year and brought the target range to a historically low level of between 1.5% and 1.75%. Wall Street expects a 100% chance that the FOMC will cut further at its next meeting in March. after the closely watched CME FedWatch tool,
(tagsToTranslate) Economy (t) Federal Reserve (t) Interest Rates (t) Central Bank Policy (t) Coronavirus (t)