WASHINGTON (AP) – Federal Reserve Chairman Jerome Powell said Tuesday that the U.S. economy appears durable, with steady growth and unemployment near a half-century low, but faces risks from the broadening viral outbreak that began in China.
Powell also said that the Fed is content with where interest rates are, suggesting that no further rate cuts would be contemplated unless economic conditions were to change significantly. Since last fall, the Fed has kept its benchmark short-term rate in a low range of 1.5% to 1.75%, well below levels typical during previous economic expansions.
The chairman made his remarks Tuesday to the House Financial Services Committee on the first of two days of semiannual testimony to Congress.
The Fed is monitoring developments stemming from the coronavirus, Powell said, which he cautioned “could lead to disruptions in China that spill over to the rest of the global economy.”
In response to questions, Powell said it was too early to assess the scope of the threat the virus poses to the U.S. economy. But he observed that the economy “is in a very good place,” with strong job creation and steady if modest growth.