Q&A continues: Q: Re global growth, China-US....>

FED: Q&A continues:

Q: Re global growth, China-US deal a relief, but now coronavirus a risk. Are you

worried about the impact on US economy and is that a significant risk to

outlook?

- A: Re coronavirus specifically, a very serious issue, significant human

suffering. Likely to be disruption to activity in China and globally. Of course

situation still in its early stages and still very uncertain of where it will

spread, macro impact in China and around the world. I'm not going to speculate.

We are very carefully monitoring the situation. Our framework is, what the

ramifications are for the US economy and our mandate. Re the global economy more

generally [gives recap of 2018-19 developments], now there are grounds for what

I would call cautious optimism on the global economy. Analysts looking for

stronger growth in 2020. Manuf PMIs suggests manufacturing may have bottomed

out. Q4 weaker than expected so rebound not assured. Then with coronavirus,

there will be implications at least in near term for Chinese output and its

closest neighbours, will see globally.