the coronavirus presents a new risk to the and..>

FED: the coronavirus presents a new risk to the outlook and could 

lead to spillovers beyond China, the Fed said in its semiannual report 

to Congress that mostly retread remarks from officials in the recent 

past. 

- The Fed will remain patient and data dependent.

- The report does not give repo operations, T-Bill purchase end dates. 

- The report says that the global slowdown in manufacturing appears to 

be nearing an end, and says a manufacturing decline similar to that 

seen in 2019 would not initiate a downturn. 

- Report says business spending is likely to remain subdued, despite 

accomodative conditions. 

- Notes that the labor market continues to strengthen, with moderate 

wage gains but suggests that labor compensation is likely restrained 

by slow labor productivity growth. The report estimates that 115K to 

145K jobs per month is needed to maintain a constant unemployment rate.  

- The report sats that inflation is projected to rise after 

Q1, and the inflation downshift in 2019 reflected transitory influences. 

- The US financial system remains more resilient than before the 

financial crisis. Leverage in the financial sector appears low while 

total houshold debt has grown slowly. 

- Levels of business debt remains elevated, with the riskiest firms 

accounting for most of the increase. 

- Asset valuations are elevated and have risen since mid-2019, as 

investor risk appetite has increased.