Fed Chair Powell: Coronavirus poses evolving risks to activity; USD drops on rate cut expectations

The Federal Reserve released a statement following the sharp volatility seen in financial markets. As the worst week since 2008 for global markets nears its end, Jerome Powell, Chairman of the Fed mentioned: 

“The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will use our tools and act as appropriate to support the economy.”

The US dollar lost ground across the board and equity prices in Wall Street moved of lows. His comments were probably taken by market participants as a hint for a rate cut.