Reuters/Joshua Roberts
Jerome Powell testifies before the Senate Banking, Housing and Urban Affairs Committee on his nomination to become chairman of the U.S. Federal Reserve in Washington, U.S., November 28, 2017.
- Governments, central banks, and organizations around the world are utilizing a range of policy tools to pad economies hit by the coronavirus.
- The G-7 announced Tuesday it would monitor the outbreak and act appropriately to keep economies from contracting, but its statement didn't name specific actions to be used.
- The Federal Reserve quickly responded to questions around the G-7 statement, issuing an emergency rate cut to boost consumer spending.
- Here are four policy actions employed against the coronavirus by monetary authorities so far, from rate cuts to flexible relief packages.
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Monetary authorities around the world are using every tool at their disposal to protect economies from the escalating coronavirus outbreak.
Experts have already warned of profit stagnation, lagging GDP growth, and global recession as the virus tears into economic activity. Markets tanked through the last week of February on rising concerns of harsh economic fallout, and Treasury bills notched record-low yields as investors piled into less volatile assets.
All eyes are now on central banks and treasuries to insulate economies from declines in consumer spending and dire supply shocks. The G-7 announced on Tuesday it would closely monitor the virus' effects, but the group's statement stopped short of naming specific policy responses. The Federal Reserve issued an emergency rate cut later that day, kicking off easing measures from peer institutions.
Here are four of the policies being used by central banks and financial authorities to curb virus-driven economic disaster.