“The fundamentals of the U.S. economy remain strong,” Jerome Powell said in a statement
Federal Reserve Chair Jerome Powell on Friday opened the door to an interest rate cut next month after a week of investor panic in financial markets that had sent stocks plunging by as much as 10 percent.
“The fundamentals of the U.S. economy remain strong,” Powell said in a statement released by the central bank. “However, the coronavirus poses evolving risks to economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy.”
In the last day, markets have been operating on near-complete certainty that the Fed will swoop in with a rate cut at its March 17-18 meetings to bolster consumer confidence.
Many economists, though, have raised doubts that lower rates, which can boost investment and spending, are well-suited to addressing the economic pain from delayed shipments of goods as the coronavirus disrupts supply chains.
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Federal Reserve Chair Jerome Powell today opened the door to an interest rate cut next month after a week of investor panic in financial markets that has sent stocks plunging 10 percent https://t.co/Ce9fYAK3J4
— POLITICO (@politico) February 28, 2020
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