Fed Signals Possible Rate Cut to Counteract Coronavirus Fallout

Chairman Powell said Federal Open Market Committee would ‘act as appropriate to support the economy’ in case of hit to outlook

Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington on March 21, 2018. Alex Wong/Getty Images

Federal Reserve Chairman Jerome Powell has signaled the central bank’s readiness to slash interest rates to cushion the economy against the effects of a widening global slowdown and potential health emergency due to the spreading coronavirus.

In a Feb. 28 statement, Powell said the Fed will “act as appropriate” in the face of risks posed by the epidemic, although he said the economy remains in good shape overall.