Fed Chair Jerome Powell did not issue its usual quarterly projections for the US economy and interest rates this week because the new coronavirus is altering the economic picture too quickly. The US Federal Reserve Chairman Jerome Powell acknowledged a concern sounded by many economists in recent weeks: that the Fed, the European Central Bank and other leading central banks have only a limited ability to ease the economic damage caused by the coronavirus. The chairman said that Congress and the White House would also have to use tax and spending policies to boost the economy. This move is intended to ensure that foreign banks continue to have access to dollars that they lend to overseas companies. He also said the central bank decided not to issue its usual quarterly projections for the economy and interest rates this week because the virus is altering the economic picture too quickly to make such projections useful.-AP

Source: The Standard March 16, 2020 01:30 UTC