February 10, 2020 / 9:32 PM / 6 months ago

Fed's Daly: Limited impact from new China coronavirus on U.S. economy

(Reuters) - A top U.S. central banker on Monday said that while China’s economy will likely slow for at least a couple of quarters due to the coronavirus epidemic, the impact on the U.S. economy has been limited.

“We haven’t seen much yet... the most important impact would be through confidence, and we haven’t seen that yet either,” San Francisco Federal Reserve Bank President Mary Daly told reporters in a telephoned question and answer session from Dublin, Ireland.

She added that she is watching the situation closely.

Daly also repeated her view that wage growth stuck around 3% despite decades-low unemployment readings shows there is more room for the labor market, and the economy, to expand.

“Policy is in a good place, the economy’s in a good place, and barring a material change in the outlook, then I’m comfortable with policy where it’s at for the foreseeable future,” Daly said.

The Fed cut rates three times last year to a target range of 1.5% to 1.75% and policymakers have signaled they expect to leave them steady for the rest of the year.

Reporting by Ann Saphir; Editing by Dan Grebler

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below