Powell "Closely Monitoring the Impact of the Novel Coronavirus"

[Asia Economy New York=Correspondent Baek Jong-min] Jerome Powell , Chairman of the Federal Reserve (Fed), stated on the 11th (local time) that he is closely monitoring the economic impact of the novel coronavirus.

[Image source=AP Yonhap News]

Before appearing before the House of Representatives that day, Chairman Powell said in a written response, "We are closely monitoring the impact of the novel coronavirus on China's and the global economic growth."

He added, "Although some uncertainties surrounding trade have lessened, the novel coronavirus could shock the Chinese economy and further affect the global economy."

In a Q&A session with lawmakers, Chairman Powell said, "There will likely be some impact on the United States as well," but explained, "However, it is too early to assess the current impact. We should avoid making hasty speculations now."

He said, "I am satisfied with the current benchmark interest rate of 1.5 to 1.75%."

Regarding Chairman Powell's remarks that day, CNBC introduced experts' opinions that the possibility of a rate cut has increased rather than a rate hike due to the novel coronavirus. CNBC also reported that market expectations are growing that the Fed will cut rates within the year.