Despite market washout, the Fed is unlikely to cut rates anytime soon in response to coronavirus
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Summary
One example is the Fed's actions after the financial crisis to reduce long-term rates so that mortgages were less costly and housing became more affordable.In the current scenario, there's no monetary policy move that can slow a disease or open global supply lanes."No amount of rate cuts is going to be able to do that," said Michael Reynolds, investment strategy officer at Glenmede Trust. But the idea that they're going to play offense on rate cuts to soften the blow on the coronavirus may be a bit premature."The Fed cut its benchmark short-term borrowing rate three times in 2019 as part of what Chairman Jerome Powell described as a "midcycle adjustment" to provide insurance against near-term downturns.However, he and his cohorts since then have said they think the U.S. economy, and monetary policy, is in good position though they will continue to monitor the coronavirus for its impacts on domestic growth.
As said here by Jeff Cox