Economic data will show coronavirus impact 'fairly soon' -Powell

Economic data will show coronavirus impact 'fairly soon' -Powell

"You have a squeeze going on, to do with difficulty in getting lots".

Speaking in Strasbourg on Tuesday, European Central Bank president Christine Lagarde was more explicit than Powell about the limits to central bank power.

Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday that if the coronavirus threat makes a material impact on the US economy, the Fed may mount a monetary policy response, such as cutting interest rates.

On Monday, Federal Reserve Bank of San Francisco President Mary Daly addressed the problem of combating possible economic downturns when the fed funds target is quite low.

Financial markets offer another pathway for impact on USA growth, he said.

Trump has repeatedly criticized the head of the Federal Reserve since announcing his candidacy for Powell in 2017, an outright and repeated criticism that has not happened publicly from former presidents.

He said the Fed is focused only on achieving its goals of full employment and stable prices.

With risks like trade policy uncertainty receding and global growth stabilizing, "we find the USA economy in a very good place, performing well", said Powell.

China picks new provincial leaders in virus epicenter
He says, "We really can not say whether it will get better, whether it will get worse, what sort of situation is going to unfold". Singapore has 50 cases, including one found at its biggest bank, DBS, on Wednesday that caused an evacuation at the head office.

Lyft Inc slid 9.7% after the ride-hailing company forecast slower revenue growth in 2020. The unemployment rate is near half-century lows, Powell said, and businesses are increasingly willing to hire workers with insufficient skills and train them.

There was a flurry of trades Wednesday in eurodollar options that stand to benefit if Chairman Jerome Powell and his colleagues end up implementing much more than the one or two quarter-point cuts that are now being priced as a central scenario for 2020. "There is nothing about this economy that is out of kilter or imbalanced".

U.S. Federal Reserve Chair Jerome Powell said on Wednesday that the central bank would stimulate the economy by aggressively buying large amounts of government bonds, also known as quantitative easing (QE), when the next downturn hits.

"We do expect there will be some effects" on the USA economy, Powell said, but added that it is too early to speculate on the impact.

But any slowdown from the coronavirus outbreak is just a risk at this point.

Powell defended himself when questioned about the optics of attending a party thrown by Jeff Bezos after the annual Alfalfa Club dinner, which Trump family members attended, saying he didn't speak to any of them and was there with his son and his new daughter-in-law.

Some economists though think the Fed might have to go that far if the economy turns bad enough. "We won't get as much Chinese tourism and the other channel I would mention is financial markets, which can create their own transmission into the economy - to the extent there are really strong reactions in financial markets, so we'll be looking at all of that". "My belief is that unless the coronavirus worsens the Fed will likely stay on the sidelines the rest of the year-neither cutting or raising rates".

Related News:

Most liked

Russian Satellites Stalking US Satellite - Space Force Chief
President Donald Trump established the Space Force , an independent military branch under the Air Force, in December. The US satellite is operated by the National Reconnaissance Office (NRO), one of the major US intelligence agencies.

Coronavirus cases in China spike higher as officials report 14840 new cases
The number of newly reported cases from China has stabilised in the past week but that has to be interpreted with extreme caution. The virus is believed to have originated late a year ago at a seafood market in Hubei province's capital Wuhan.

When Will 'To All The Boys I’ve Loved Before 3' Come Out?
In the film, Lara Jean never writes John Ambrose back, and instead, he shows up as a fellow volunteer at Belleview. Covey, Trezzo Mahoro as Lucas, Madeleine Arthur as Christine, Emilija Baranac as Gen and Kelcey Mawema as Emily.

Sen. McConnell urges Senate against passing War Powers Resolution
Under the US Constitution, the president is the commander in chief of the armed forces, but Congress has the power to declare war. If my hands were tied, Iran would have a field day . "I've had a long-standing opposition to the War Powers Act.

Coronavirus 'superspreader' Steve Walsh discharged from hospital
He was given two tests for the virus, now known officially as COVID-19, and both came back negative, Sky News reported . The Scouting Association confirmed to Yahoo UK Mr Walsh has not been to any scout meetings since his return to the UK.

Best pre-order deals on the Samsung Galaxy S20+ (UK deal)
Unveiled at the company's Unpacked event in San Francisco on Tuesday morning, the Z Flip will go on sale this Friday, February 14. And while the Galaxy Ultra is one of the most expensive phones out there (folding handsets excluded), the specs prove why.

Coronavirus death toll leaps in Hubei
Hubei had previously only allowed infection to be confirmed by RNA tests, which can take days to process and delay treatment. The ship spent two weeks at sea after being turned away by Japan, Taiwan, Guam, the Philippines and Thailand.

California coronavirus case ups U.S. infections to 14
The request, signed by various evacuees in Wuhan, China, includes a cover page which reads,"Suggestion Letter to CDC". The suspension affects all flights between United's USA hubs and Beijing, Chengdu, Shanghai and Hong Kong.

AG William Barr to Testify Before House Judiciary Committee... in Six Weeks
And I want to thank, if you look at what happened, I want to thank the Justice Department for seeing this, this terrible thing. Trump said that it was unfair that prosecutors recommended such a high sentence for Roger Stone when Comey hadn't been jailed.

China sees rising recovery rate of COVID-19 patients
In Japan, 39 new cases were confirmed on a cruise ship under quarantine at Yokohama, bringing the total to 174 on the ship. Health officials reported 14,840 new cases-reversing several days of declines in official new diagnoses in the province.

Coronavirus: Hunt for contacts of latest United Kingdom case
Earlier this week, the British government declared that the coronavirus was a "serious and imminent" threat to public health. There's now no vaccine for coronavirus , but there are things you can do to help stop germs like coronavirus spreading.

Storm Dennis: Flooding likely and may 'cause danger to life'
A separate yellow warning for wind for the whole of Wales runs from 10:00 GMT on Saturday until just before midnight on Sunday. While Storm Dennis will not be as severe as Storm Ciara, it is set to bring heavy rain and strong winds to several counties.

A septuagenarian spat fit for Twitter — Trump and Bloomberg
In a pre-Super Bowl interview this month, Trump said he thinks "of little" when he hears Bloomberg's name. Earlier in the week, Bloomberg secured the endorsement of a handful of black members of Congress.

Oregon State faces tough test vs No. 14 Oregon
The loss moved Arizona (20-4, 8-4 Pac-12) to fourth in conference standings and dropped Oregon State (19-5, 7-5 Pac-12) to fifth. The first half was largely a back-and-forth affair, with Oregon State leading by as many as five points and the Ducks by four.

UK’s Javid: Frictionless trade with the European Union would be ‘over’
He added that Britain should not be under the illusion the City of London's financial services will have preferential access. Currently, the pair is trading at 1.7230, up 0.13% as of 10:45 AM UTC.