Federal Reserve Chair Jerome Powell provides twice-a-year updates to Congress regarding the outlook for the U.S. economic growth. Today he will be testifying before Congress and the expectations are for a positive update.
According to Reuters, “With risks like trade policy uncertainty receding, Powell has signaled he sees no reason to adjust U.S. interest rates unless there is a “material” change to the current outlook.” On Friday he said the central bank was “carefully watching developments” in the economy and would “act as appropriate.”
Most recently the trending topics of discussion regarding the economic outlook are the continuous trade discussions between US and China and the coronavirus outbreak.
A senior medical adviser from China has commented that the coronavirus outbreak in China may be over by April, as deaths pass 1,000 and the World Health Organization feared a “very grave” global threat. As the epidemic squeezed the world’s second-biggest economy, Chinese firms struggled to get back to work after the extended Lunar New Year holiday, hundreds of them saying they would need loans running into billions of dollars to stay afloat.” according to a Reuters article.
The next couple months will paint a better picture of the US economic outlook as well as the direct and indirect world economic effects of the coronavirus.