The Strategist

Trump administration insists on Fed rate cuts due to coronavirus

03/03/2020 - 06:17

The administration of US President Donald Trump is discussing measures that will reduce the impact of coronavirus on the economy and markets, writes Bloomberg. In particular, the officials intend to push the Federal Reserve System (Fed) to lower the base interest rate.

According to the agency’s sources, Director of the National Economic Council under the White House of the USA Larry Kudlow and Finance Minister Steven Mnuchin are in favor of cutting rates before the Fed meeting on March 17-18. According to them, the rate cut is one of the most discussed economic measures to combat the consequences of the coronavirus in the White House.

Earlier, Fed Chairman Jerome Powell said that the regulator is ready to take measures to support the country's economy amid risks due to coronavirus. “We will use our tools and act accordingly to support the economy,” he said.

Recall that cases of COVID-19 coronavirus infection were first recorded in the Chinese city of Wuhan in December 2019. Later, infected were found in more than 70 countries. In China, more than 80 thousand people were infected, more than 2.9 thousand died, 47.2 thousand recovered. Outside, the number of infected people exceeded 8.7 thousand, more than 120 died. The World Health Organization recognized the outbreak of coronavirus as an emergency of international scale.