Federal Reserve Chairman warns coronavirus impact on world economy

WASHINGTON : Federal Reserve Chairman Jerome Powell, warned of the negative impact of China’s coronavirus outbreak on East Asia and world economy.

Powell told reporters Wednesday, that the new Chinese coronavirus is a “very serious” issue that may disrupt economic growth in East Asia.

There is likely to be some disruption to activity in China and possibly globally based on the spread of the virus, travel restrictions and business closures that have already been imposed, he added.

“It’s too early to say,” he said, but there will clearly be implications, at least in the near term, for Chinese output, and “I guess for some of their closest neighbors, and we’ll just have to see what the effect is globally,” he added.

The US Federal Reserve kept Wednesday interest rates steady at 1.5-1.75 percent, its first decision in this regard for 2020, following three interest rate cuts in 2019 and four increases in 2018.

Source: Kuwait News Agency