Federal Reserve Chairman Watches for Impact of New Coronavirus, February 12, 6:48 pm
Federal Reserve Chairman Powell, the US central bank, will testify in the U.S. House of Representatives on Wednesday that the new coronavirus is a new risk to the global economy. Was shown.
In this context, Mr. Powell said, regarding the immediate monetary policy, "If the US economy moves as expected, the current policy stance will be appropriate." He expressed his intention to maintain the current monetary policy for the time being.
The Federal Reserve has been taking preventive rate cuts three times since last summer to support the economy following trade tensions between the United States and China, but testimony of this day suggests that such monetary easing still supports the economy. This shows the policy to keep the policy interest rate unchanged for the time being.
"While trade uncertainty has declined, he is paying close attention to the effects of the new coronavirus, which not only disrupts the Chinese economy but also affects the global economy," Powell said. And give them a careful look at the situation.
While the impact of the new coronavirus is worried about, the Dow Jones stock index has seen all major indices, such as the Dow Jones Average, argue that the impact on the U.S. economy is currently limited. It is changing at the standard.