Breaking: Powell speech: Coronavirus is having a profound effect on US and around the world
At the post-monetary policy announcement press conference early Monday, the US Federal Reserve (Fed) Chairman J. Powell said that coronavirus is having a profound effect on the US and around the world.
Additional comments
US banks are strong, have high levels of capital, liquidity and well-positioned to provide credit.
Coronavirus will have significant effect on the economy in the near term coronavirus.
Weakness abroad will weigh on US exports for a time.
Financial conditions in the united states have tightened markedly.
Today's actions will help the US economy and promote a more vigorous return to normal.
Today's FOMC meeting was in lieu of meeting on march 17-18.
The Fed has a range of views on path of the US economy.
Q2 is probably going to be weak in the US.
After Q2, it is "very hard to say" how long economic impact will last; depends on virus spread.
The Fed is prepared to use full range of tools in support of flow of credit to businesses.
The Fed does not see negative interest rates as appropriate policy response in the united states.
Asset purchase program is designed to restore key markets to normal function.
Coronavirus outbreak is a multifaceted problem that requires response across society, including fiscal policy.
The Fed thinks fiscal responses are critical; hopes they are effective.
The Fed expects inflation to fall a little bit further due to coronavirus.
In a global coordinated move to tackle the coronavirus impact on the economy, in the face of growing recession risks, the Fed slashed rates back to near zero, restarted bond-buying and joined with other central banks to ensure liquidity.
Author
FXStreet Team
FXStreet
Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
