WASHINGTON - Senior officials in US President Donald Trump's administration on Sunday tried to calm market panic that the coronavirus could cause a global recession, saying the US public had overreacted and that stocks would rebound due to the American economy's underlying strength.
US financial regulators who will gather on Wednesday face their most challenging week in a decade. One official told Reuters that the coming days will determine whether the federal government must take measures to bolster market confidence. On Friday afternoon, Federal Reserve chair Jay Powell sought to quell fears, stoked by dire economic data from China, flagging that the central bank would take action if necessary to support the economy, which he said remained strong.
The fast-spreading virus has infected around 85,000 people in 53 countries. China, the world's second-largest economy and epicentre of the outbreak, is home to the vast majority of cases, with about 70 diagnosed in the United States. So far, the outbreak's biggest measurable effect has been in China, but a purchasing managers survey last month signaled it was beginning to hit US businesses. Another batch of US economic indicators due out early this week will be closely watched for evidence of a growing impact.