Coronavirus Mentioned as a Factor of Global Economic Uncertainty
Caution Against Premature Judgments
"Focus on Global Economic Impact Rather Than Just the US"
[Asia Economy New York=Correspondent Baek Jong-min] Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), mentioned that the outbreak of the novel coronavirus could potentially impact the global economy going forward.
Chairman Powell made these remarks during a press conference after concluding the two-day Federal Open Market Committee (FOMC) meeting on the 29th (local time), where the decision was made to keep the benchmark interest rate unchanged.
Powell stated, "There are signs of resolution in recent international trade disputes, and the global economy is stabilizing," but also noted that "uncertainties such as the novel coronavirus still exist." While the Phase One trade agreement between the U.S. and China has reduced the likelihood of trade conflicts, he acknowledged that the novel coronavirus has emerged as a factor negatively affecting the global economy.
When asked, "To what extent do you expect the coronavirus to significantly impact the U.S. economy?" Powell replied that he is monitoring the global impact more than just the U.S., saying, "Economic activity in China appears to be disrupted. With travel restrictions and business closures being implemented, global effects are also anticipated."
However, he assessed that "since the situation is still in its early stages, it is difficult to gauge the extent of the impact on China's macroeconomy, its major trading partners, and the global economy," cautioning against premature conclusions. He reiterated, "We are watching the situation very carefully."
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