Amid a tumbling stock market and questions about how the White House is handling the coronavirus, Fed Chair Powell says the virus 'poses evolving risks to economic activity.'
Markets are currently pricing in a 0.5 percent rate cut at the next Fed meeting, on March 17-18, according to the CME Group's FedWatch Tool.
While some analysts say a lower rate would calm Wall Street and encourage spending, other economists argue that the Fed's policy toolbox can only go so far to mitigate the economic fallout. "It's hard to fix a real problem with monetary policy," Bryan Routledge, an associate professor of finance at Carnegie Mellon University, told NBC News."It's hard to fix a lack of physical goods with monetary policy. When you have factory workers not going to their jobs, that's not something you can fix with short-term interest rates."
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