Despite Novel Coronavirus... Federal Reserve Presidents Say "Limited Impact on US Economy"

[Asia Economy Reporter Jeong Hyunjin] As the novel coronavirus infection (Wuhan pneumonia) spreads, U.S. monetary authorities are closely monitoring the situation but view its impact on the U.S. economy as limited.

On the 10th (local time), according to the Wall Street Journal (WSJ) and others, Patrick Harker, President of the Philadelphia Federal Reserve Bank, said in a speech at an event held in Delaware, "The U.S. economy is still generally positive," adding, "We need to watch the situation before taking action." He further stated that if the situation worsens significantly and begins to have a substantial impact on the U.S. economy, measures could be taken, but "at this point, we are not in such a situation."

Mary Daly, President of the San Francisco Federal Reserve Bank, is also monitoring the medium- to long-term economic effects of the novel coronavirus but said, "So far, nothing has materialized," and "The economic impact of the novel coronavirus may be temporary."

Meanwhile, positive assessments of the U.S. economy continue. Michelle Bowman, a member of the U.S. Federal Reserve Board, said in a speech delivered at a community bankers conference held in Orlando, Florida, that "The national economic situation is very smooth, which can support the regional economy." She stated, "My outlook for the U.S. economy is to maintain a moderate growth pace with low unemployment," and "I expect inflation to gradually rise toward the Fed's target level of 2%."

Bowman’s remarks came after last month's Federal Open Market Committee (FOMC) meeting, where the benchmark interest rate was held steady at 1.50?1.75%. Bowman emphasized, "This decision should help support the economic expansion."