US Federal Reserve does not expect to reduce interest rates for COVID-19

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WASHINGTON (Sputnik) – The US Federal Reserve is unlikely to reduce interest rates to protect the country’s markets from the impact of the new coronavirus, White House economic advisor Larry Kudlow told the news network CNBC local.

“I don’t expect the Fed (Federal Reserve) to make any panic movements,” said Kudlow, who is director of the National Economic Council of the White House, in an interview with CNBC.

The advisor also risked: “Apart from the virus, I have said that I would not mind seeing my friends in the Fed be a bit bolder in their target rate and in their balance sheet; before the virus I said that it would not be related to it.” .
Kudlow’s comments came when the Centers for Disease Control and Prevention (CDC) confirmed 53 cases of coronavirus in the United States, an increase of only 14 compared to those reported earlier this month.
The Secretary of Health of the United States, Alex Azar, also said on Tuesday that it is expected to increase the amount of infections in the country, and that is why he requested more funds from Congress to combat contagion.

Money market operators increased bets during the past week that the Federal Reserve will be forced into another round of protective rate cuts if the spread of the new coronavirus shows no signs of slowing down and threatens US economic growth.

The Federal Reserve has just finished a relaxation cycle in December after cutting rates consecutively for three months, a quarter of a point at a time.

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