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US Central Bank to take action in case of impact of coronavirus on economy

UNITED STATES (OBSERVATORY NEWS) — The US Central Bank (Federal Reserve, Fed) is closely monitoring the impact of coronavirus on the economy, but officials do not have sufficient leverage, said the head of the Federal Reserve Bank (FRB) of Philadelphia Patrick Harker, reports Reuters.

According to Harker, the main tool of the Federal Reserve is to reduce interest rates by 0.25%, but this will not bring relief for companies whose supply chains have already suffered from the outbreak of the Chinese virus and measures to combat it.

The representative of the US Central Bank also noted that if the situation worsens, if this significantly affects the country’s economy, then the Fed “will have to think about accommodation.”

“But I don’t think that at this moment we are at this stage,” Harker said.

Prior to this, the chairman of the Federal Reserve Bank of San Francisco, Mary Daily, noted that the likely slowdown in the growth of the Chinese economy due to the coronavirus will have a weak effect on the US economy, however, it closely monitors the current situation.

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