The rare statement issued Friday by Powell before the financial markets closed for the USA weekend came as stocks posted their seventh-straight daily loss, a slump which earlier prompted a string of Wall Street banks to predict the Fed would start reducing rates at its meeting next month, if not sooner.
While Fed officials don't have to cut rates now, they need to "make clear they are prepared to cut rates much as Federal Reserve Chair Jerome Powell did last June with his "act as appropriate to sustain the expansion" comments", according to Duy.
Powell on Friday stated the central financial institution will "act as applicable" to assist the economic system within the face of dangers posed by the coronavirus outbreak, although he stated the economic system remained in stable situation.
The United States Federal Reserve may need to move aggressively to cut borrowing costs to cushion the U.S. economy from the effects of the rapid spread of the coronavirus outbreak, which sent global stocks tumbling this week.
The flip side of the equity selloff, on the other hand, is a global flight to safety that has driven down U.S. Treasury yields, on its own "a bullish factor for U.S. economic growth" that would keep borrowing costs lower, Bullard noted.
The United States Federal Reserve will cut its interest rate target to compete with Bitcoin (BTC) post-halving, traders believe.
The Fed cut rates at its meetings in July, September and October, but has since been on hold and indicated it planned to be so long as there was no "material change" to the outlook.
Mick Mulvaney blames media for 'huge panic' over COVID-19
Both the Democratic-controlled House and GOP-held Senate are eager to complete work on the measure in the next two weeks. Trump also said that "the 15 [people being diagnosed with Coronavirus on US soil] will soon be down to three, four".
But stocks kept sliding and economists started slicing their forecasts for the USA economy. Asked if tax-policy action might be likely given this economic setback, Trump said a "pretty major" middle-income tax cut was being considered in not too distant future.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move.
Michael Feroli, chief USA economist at JPMorgan Chase & Co.in NY, said Powell has put an interest-rate cut "squarely on the table" for when the Federal Open Market Committee meets March 17-18 in Washington.
But with interest rates already low, the Fed has little room to maneuver to support growth in the event of an economic slowdown.
The Bank of Canada may show itself to be the first out of the gate with a response as it convenes a policy meeting next week.
Former Federal Reserve Chair Janet Yellen said earlier in the week that it is a possibility that the coronavirus could push the USA into a recession.
The benchmark federal funds rate is between 1.5 percent and 1.75 percent.
"I hope they get involved soon", he told reporters, adding: "I'm not a big fan of the Fed". Futures pricing reflected a roughly 50-50 chance of a quarter percentage point cut versus a half point reduction. "The best idea is to focus on public health". With Dow Jones Industrial Average shedding 10% of its value in February, the S&P 500 also lost 8.4%, and the Nasdaq down by 6.4%.