A fast-spreading virus has killed hundreds in China and sickened thousands more, bringing activity in the second-largest economy to a near standstill. And the scope of its economic consequences may only grow, according to the Federal Reserve.to Congress on Friday, the central bank said possible spillover effects from the coronavirus have presented "a new risk to the outlook."
As the coronavirus became increasingly deadly and widespread over the last month, authorities imposed a wave of new restrictions on travel and trade. Businesses and stores have also shuttered in an effort to contain the outbreak. , the vast majority of US firms with operations in China expect the outbreak to reduce revenue this year. Nearly a quarter thought the impact would be significant, with revenue falling by at least 16%.
"Downside risks to the US outlook seem to have receded in the latter part of the year, as the conflicts over trade policy diminished somewhat, economic growth abroad showed signs of stabilizing, and financial conditions eased," the report said.
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