AFP, Washington :
The coronavirus outbreak has already disrupted travel and access to goods for US industry, and businesses nationwide sounded the warning that things could get worse, the Federal Reserve said Wednesday.
While activity in the world’s largest economy continued to grow at a modest to moderate pace in recent weeks, the outlook was becoming more uncertain, according to the Fed’s beige book survey. The report contains dozens of mentions of the deadly virus, which said “producers feared further disruptions in the coming weeks.” Painting a picture of a widespread and growing impact, the report underscores the Fed’s decision Tuesday to make an emergency interest rate cut to boost confidence and shore up the US economy.
“The coronavirus has entered the list of concerns, which still includes tariffs and tight labor markets,” according to the Philadelphia Federal Reserve Bank.
And in Chicago, many manufacturers “expected a larger effect if the disruptions continued much longer.”
Meanwhile, “local customers have been avoiding some of Philadelphia’s Asian restaurants and shops, as unfounded fears spread,” the report said. Amid rising concerns about the virus and the damage to the global economy, the Fed’s policy-setting committee on Tuesday slashed its key interest rate by a half point to a range of 1.0-1.25 percent – the first inter-meeting cut since late 2008 at the height of the global financial crisis.
The coronavirus outbreak has already disrupted travel and access to goods for US industry, and businesses nationwide sounded the warning that things could get worse, the Federal Reserve said Wednesday.
While activity in the world’s largest economy continued to grow at a modest to moderate pace in recent weeks, the outlook was becoming more uncertain, according to the Fed’s beige book survey. The report contains dozens of mentions of the deadly virus, which said “producers feared further disruptions in the coming weeks.” Painting a picture of a widespread and growing impact, the report underscores the Fed’s decision Tuesday to make an emergency interest rate cut to boost confidence and shore up the US economy.
“The coronavirus has entered the list of concerns, which still includes tariffs and tight labor markets,” according to the Philadelphia Federal Reserve Bank.
And in Chicago, many manufacturers “expected a larger effect if the disruptions continued much longer.”
Meanwhile, “local customers have been avoiding some of Philadelphia’s Asian restaurants and shops, as unfounded fears spread,” the report said. Amid rising concerns about the virus and the damage to the global economy, the Fed’s policy-setting committee on Tuesday slashed its key interest rate by a half point to a range of 1.0-1.25 percent – the first inter-meeting cut since late 2008 at the height of the global financial crisis.
