[CNBC Television] How the coronavirus could affect the Fed’s outlook on interest rates for 2020

🎯 Загружено автоматически через бота: 🚫 Оригинал видео: 📺 Данное видео принадлежит каналу «CNBC Television» (@CNBCtelevision). Оно представлено в нашем сообществе исключительно в информационных, научных, образовательных или культурных целях. Наше сообщество не утверждает никаких прав на данное видео. Пожалуйста, поддержите автора, посетив его оригинальный канал. ✉️ Если у вас есть претензии к авторским правам на данное видео, пожалуйста, свяжитесь с нами по почте support@, и мы немедленно удалим его. 📃 Оригинальное описание: Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research, and Mike Santoli, CNBC’s senior markets commentator, join “Squawk Box“ to discuss how the coronavirus outbreak might influence the Fed’s outlook on rates for the year. The Federal Reserve heads into its first meeting of the new decade with its key responsibility — interest rates — well resolved, but with a slew of other less headline-grabbing but still significant decisions on the table. Practically no one expects the central bank to move its benchmark borrowing rate until at least September. Central bank officials have made it clear that it would take a meaningful change from current conditions to prompt another cut. There’s also pretty much no chance of a hike absent a sudden jump in inflation. But officials still will be called on to answer a few key questions: What role could the Wuhan coronavirus play in policy terms? How much more will the Fed expand its balance sheet? Is it time for another technical adjustment on the interest paid on bank reserves? Wednesday’s rate decision and subsequent news conference from Chairman Jerome Powell likely will provide only hints rather than concrete answers. However, the details of where the Fed stand will be important. “At best, they can be patient and wait and see and stay to their original script, which is ‘we’re on hold this year,’” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. “If they alter the script, I do think markets are going to be concerned.” The virus scare The intensifying coronavirus spread has gotten the market’s attention, both on a human level and the extent to which it could slow economic activity, particularly in China. Past practice for the Fed has been to acknowledge such events but not to react to them. Policymakers generally view things like natural disasters, epidemics and other exogenous occurrences as one-offs in nature and not a factor in long-term policy decisions. In a November speech before Congress, Powell said it would take a “material reassessment” of conditions before the Fed would change policy. “A China-centered global outbreak of a highly contagious disease with a high fatality rate that threatened to derail tentative global economic stabilization – if this is what we are dealing with – could in principle meet the ‘material reassessment’ test, though we do not think Powell will get drawn into this type of judgment at this juncture,” Krishna Guha, head of global policy and central banking strategy at Evercore ISI, said in a note. The economy more broadly seems to be fairly steady, with the Atlanta Fed projecting fourth-quarter GDP growth to come in at 1.9%. That’s not gangbusters, but it is better than the flat growth the indicator had shown earlier in the quarter. As a compromise, the Fed could change the language in its statement about the way it is monitoring international developments. Powell also could give a nod to the manufacturing slowdown; the headline durable goods orders for December were better than expected, but masked weak underlying fundamentals. For access to live and exclusive video from CNBC subscribe to CNBC PRO: » Subscribe to CNBC TV: » Subscribe to CNBC: » Subscribe to CNBC Classic: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: #CNBC #CNBC TV