Federal Reserve Bank of St. Louis President James Bullard on Friday said that further interest rate cuts were possible to counter the damage the coronavirus outbreak could wreak on the economy.
“Further policy rate cuts are a possibility if a global pandemic actually develops with health effects approaching the scale of ordinary influenza, but this is not the baseline case at this time,” he said in remarks prepared for the Fort Smith Regional Chamber of Commerce.
The Dow Jones Industrial Average has already shed nearly 1,000 points and is down 3.69% since opening Friday.
Declines in the S&P 500 and Nasdaq composite also continued, with both indexes dropping more than 3% since opening.
The markets are reacting to concerns about the spread of the coronavirus.
Acting White House chief of staff Mick Mulvaney said on Friday that the United States might close schools temporarily during the coronavirus outbreak.
The United Kingdom on Friday reported its first death from the virus. The person was a passenger on the Diamond Princess, the cruise ship on which many passengers were infected with the virus.
New Zealand and Nigeria on Thursday reported their first cases of the virus.
[Related: GOP fears election risk for Trump as markets tumble over coronavirus]
