Risks to outlook remain, Fed monitoring virus: Powell

Federal Reserve Chairman Jerome Powell said the US central bank is keeping a close eye on fallout from the deadly coronavirus outbreak in China, singling it out among risks threatening the US and world economy.

“In particular, we are closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy,” Powell said before US lawmakers Tuesday.

Powell stopped short of saying the outbreak had changed the Fed’s baseline outlook for the economy, or the expectation among many members of the FOMC that rates will remain on hold this year. US equities climbed as investors digested the latest views from the Fed chair.


“The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labor market and inflation returning to the committee’s symmetric 2% objective,” Powell said. “As long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy will likely remain appropriate.”