Fed's Bostic: Businesses expect coronavirus to cause short-term disruption

Eren Sengezer FXStreet

Businesses in the US expect the coronavirus outbreak to cause short-term disruption, Raphael Bostic, president of the Federal Reserve Bank of Atlanta, told CNBC on Friday and added that their models pointed out to a short-term hit followed by a recovery after.

"No impulses to do anything with our current policy stance," Bostic noted and reiterated that he sees the US GDP growth in 2020 around 2-2.25%. "The bond market is reflecting a low neutral rate of interest, flight to safety."

USD reaction

The US Dollar Index ignored these comments and was last down 0.2% on the day at 96.68.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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