Economy

Fed chief describes chinks in otherwise healthy U.S. economy

Fed chief describes chinks in otherwise healthy U.S. economy”

US Federal Reserve Chair Jerome Powell says he is concerned that the coronavirus outbreak could disrupt the global economy.

On the coronavirus, Powell said: Whatever impact it has on the USA economy will show up in the economic data soon, but it's too uncertain to say whether it will lead to a "material" change in the US outlook.

"The question we will be asking is will these be persistent effects that could lead to a material reassessment of the outlook", Powell told the committee.

U.S. President Donald Trump looks on as his nominee for the chairman of the Federal Reserve Jerome Powell takes to the podium during a press event in the Rose Garden at the White House, November 2, 2017 in Washington, DC. But we will use those tools aggressively.

This year's federal deficit will hover at around US$1 trillion.

Uncertainty around the reliability of official figures coming out of China regarding the extent of the coronavirus outbreak means that the true risk that it poses to other economies remains unclear. -China trade war and slower overseas growth. "The central bank is watching the situation closely for a meaningful impact on the USA, should it go in that direction". More timely survey data suggests that thing picked up a little in January. "If markets get nervous there may not be much that can be done from a monetary policy standpoint".

Despite a record USA expansion, the Fed's benchmark rate is in a range of 1.5% to 1.75% following three cuts in 2019. The answer, he said, is still too early to know.

More news: Workers Return to Giga Shanghai After Shutdown Due to Coronavirus

Shelton is set to appear alongside fellow Fed nominee Christopher Waller, who now serves as the executive vice president and director of research at the Federal Reserve Bank of St. Louis.

"I hope to contribute intellectual diversity as a Governor and would work collegially to promote sound money and sound finances", she said.

Powel said the Fed's current policy stance will likely remain appropriate, as long as the USA economy stays "broadly consistent" with the Fed's outlook.

And the number of people working more than one job is at "a very, very high level right now", Powell said.

Factory shutdowns and travel restrictions aimed at containing the virus' spread within China and to the rest of the world are expected to disrupt supply chains.

Powell also stressed that "it is important for fiscal policy to be in a position as it always has been to support the economy in a downturn as well".



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