With corona virus spreading US economy is at risk
The spread of the new corona virus in China poses a new risk to the US economy. With that warning, the Federal Reserve, the umbrella of US central banks, presents a semi-annual report to Congress.
The new virus has now claimed more than 600 lives, mainly in China. Measures against further spread, such as travel restrictions and factory closures, put a considerable brake on the economy of the Asian country, according to economists. The effect may also have its effect on the US, warns the Fed.
“Given the size of the Chinese economy, major unrest in China can have an effect on the US and world markets,” says the central bank umbrella.
Among other things, a rise in the dollar, which is bad for US importers, and reduced trade can be damaging to the economy. In addition, the epidemic can ensure that investors invest less money in risky investments.
All in all, the outlook for the United States seems to be improving slightly, the Fed notes. For example, the end of the slowdown in global trade and industry in the US would be in sight. These developments were previously classified as risk factors for the American economy.