The US Federal Reserve is ready to respond “appropriately” to the economic impact of the corona virus. That said Jerome Powell, president of the umbrella of US central banks. According to him, the foundations of the American economy are strong, but the virus outbreak is an increasing risk.
Many economists have recently lowered their prospects for global and US economic growth due to the epidemic. The financial markets are therefore increasingly looking into a possible intervention by the Federal Reserve, which could decide to lower interest rates next month.
“The Federal Reserve is keeping a close eye on developments and their implications for the economic outlook,” Powell responds to those speculations.
The central bank umbrella will use its monetary resources to the extent that it is appropriate to support the economy, he added.
The stock markets in New York opened on Friday with clear losses. Concerns about global distribution, which the major indicators have already lowered considerably this week, are still continuing. Stock markets are heading for their worst trading week since the outbreak of the financial crisis in 2008.
Just after the opening bell, the Dow-Jones index was 2 percent lower at 25,279 points. The broad-based S&P 500 lost 2.4 percent to 2908 points and tech exchange Nasdaq lost 2.2 percent on 8386 points.
In terms of companies, aviation companies, travel organizations and other companies are in the tourism industry in the corner where the blows fall. The American travel industry reported that ticket sales were more than 9 percent below the level of a year earlier. Aviation companies generally lost up to a fifth in value.
That loss has not yet come to an end. American Airlines, the world’s largest airline group, fell nearly 4 percent. Competitors Delta Airlines and Southwest Airlines were respectively lowered by 4 percent and 3.3 percent. Online booking companies Booking Holdings and Expedia lost up to 2.2 percent.