U.S. Federal Reserve Chairman Jerome Powell testifies before the House Financial Services Committee during the Monetary Policy and the State of the Economy hearing on Capitol Hill in Washington D.C., the United States, on Feb. 11, 2020. (Photo by Ting Shen/Xinhua)
"The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy."
WASHINGTON, Feb. 28 (Xinhua) -- In an attempt to sooth investors, U.S. Federal Reserve Chairman Jerome Powell on Friday signaled that the central bank will cut interest rates to support the economy if necessary, as U.S. stock markets continued to plunge over coronavirus uncertainty.
"The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy," Powell said in a brief statement Friday afternoon.
"The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity," said the Fed chairman.
A trader works at New York Stock Exchange in New York, the United States, Feb. 27, 2020. U.S. stocks closed sharply lower on Thursday as investors fled the stocks market and flocked into safe-haven assets. (Xinhua/Wang Ying)
His remarks followed an earlier comment from Federal Reserve Bank of St. Louis President James Bullard, who signaled rate cuts are not imminent despite coronavirus concerns.
All three major indexes tumbled into correction territory this week. The Dow Jones Industrial Average dived for the 5th day in a row Friday, falling more than 800 points, or over 3 percent, shortly after the opening bell. The Dow dropped over 3,200 points From Monday to Thursday.
National Economic Council Director Larry Kudlow, President Donald Trump's top economic advisor, said in a Fox Business interview Friday morning that real-time economic numbers were "holding up nicely" and investors should not rule out "more optimistic options." ■
