Fed Chairman heads to Capitol Hill to face growth risk questions
Powell testifies before the House Financial Services Committee on Tuesday
Federal Reserve Chairman Jerome Powell will spend two days this week on Capitol Hill.
He'll first testify before the House Financial Services Committee on Tuesday and then the Senate Banking Committee on Wednesday.
Powell will most likely face questions regarding the possible impact that the coronavirus will have on the U.S. economy and in turn, the Fed's view on interest rates.
China remains in the forefront of events involving the U.S.
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First there was the long trade negotiations and tariff fight between the world's two largest economies leading to the phase one agreement.
Now, it is the impact that the deadly coronavirus is having on the global economy.
Fed officials cut their benchmark federal-funds rate three times last year, to a range between 1.5 percent and 1.75 percent.
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The central bank raised it four times in 2018.
The Fed left the rate unchanged at the last meeting and maintained a wait-and-see policy stance.
Daily headlines regarding the outbreak in China and infections found in U.S. states could cause the Fed to act and adjust rates if the epidemic isn’t contained.
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Central banks moved aggressively last year to provide stimulus to cushion the global economy from slower growth amplified by trade tensions.
The Fed released its semiannual report to Congress on Friday, detailing the potential growth headwinds from the coronavirus and weakness in China, according to the Wall Street Journal.
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Lawmakers may also question Powell on why the Fed is considering changes to its inflation-targeting framework.
The Fed follows a 2 percent inflation target.