Some analysts have said that interest-rate cuts could have limited power to fix economic damage caused by the coronavirus because lower rates - which are meant to encourage investment - can do little to open closed factories or encourage people to leave their homes.
That echoed other Fed policymakers, who have so far trapped to the line that it is nevertheless much too early to predict the financial effects on the US economic system of the virus, even though displaying careful optimism any results would be short-term sufficient not to warrant a modify in the path of monetary plan.
She did, having said that, observe that she has incorporated the possible effects of the coronavirus as a draw back danger to her forecast this 12 months, which is for US financial progress close to two%, solid occupation industry gains and reduced and stable inflation.
Mester says there are risks to the U.S. outlook, including impact of coronavirus outbreak. Is the market being too aggressive in pricing in Fed rate cuts at the moment?
Nothing in Clarida's remarks suggest the Fed is ready to move.
South Korea, which has the most virus cases in Asia outside China, reported 60 new cases on Tuesday, increasing the total number of infected patients there to 893 - leaving few to expect the region's currencies to do more than hold steady for now.
In its forecasts from December, most Fed officials said they expected to keep rates steady for the year.
A month ago it was generally aligned with the fed funds rate.
Evans said one approach that could help the Fed fight low inflation would be to adopt a target for an inflation range, but only if it asymmetrically tolerates inflation above 2%.
There is no doubt that gold has been a tricky market to analyze and trade this week because it only makes sense that prices should be moving sharply higher in response to a steep plunge in U.S. equity markets and a drop in 10-year U.S. Treasury yields to a record low on Thursday.
Clarida indicated that the labor market still had slack which should allow for continued hiring before wage pressures start to emerge. "If you're always at or below 2 that's not a symmetric goal", he said. "The fundamentals of the U.S. economy were solid in 2019 and continuing into 2020", Clarida said in an interview on CNBC. But members of the policy-setting Federal Open Market Committee have said in recent days it was too soon to know whether it would need to take action to step in to address the outbreak.
-With assistance from Max Reyes.