Powell Signals No Change in Rates Likely
Fed Chair Jerome Powell testified before the House Financial Services Committee on Tuesday. Powell acknowledged that the China coronavirus could pose serious economic risks, but he maintained that the Fed did not plan to change its current monetary policy. Powell told lawmakers that the Fed was “closely monitoring the emergence of the coronavirus, which could lead to disruptions in China that spill over to the rest of the global economy”. Most important for investors, Powell said that “the current stance of monetary policy will likely remain appropriate.”
