US Federal Reserve: "Novel Coronavirus Poses New Risks to US and Global Economies"

A charter flight carrying Korean residents who evacuated from Wuhan, Hubei Province, China, the origin of the novel coronavirus infection, and nearby areas arrived at Gimpo International Airport on the morning of the 31st of last month. A Korean resident is seen holding a child while disembarking from the Korean Air charter flight. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The U.S. Federal Reserve (Fed) assessed on the 7th (local time) that the negative impact of the novel coronavirus infection (Wuhan pneumonia) could spread to markets worldwide, including the United States.

According to Bloomberg News and others, the Fed explained in its semiannual report submitted to Congress on the same day that "due to the size of the Chinese economy, significant difficulties in China could spread to the U.S. and global markets through reduced risk tolerance, dollar appreciation, and trade contraction."

It also analyzed that "the impact of the novel coronavirus in China has emerged as a new risk to the economic outlook."

Besides this, the Fed stated that although the moderate expansion of the U.S. economy slowed last year due to manufacturing weakness and sluggish global growth, core risks have diminished and the likelihood of a recession has decreased.

Regarding the U.S. economic recovery that has lasted more than 10 years, it analyzed that risks seem to have eased thanks to three interest rate cuts made last year.

Meanwhile, Fed Chair Jerome Powell is scheduled to appear before relevant committees of the U.S. House and Senate on the 11th and 12th to explain the current economic situation and monetary policy.

This content was produced with the assistance of AI translation services.