San Francisco Fed President Mary Daly told CNBC that monetary policy is now in a “really good position”. Uncertainties like US-China trade tensions receded while hard Brexit was avoided. The three rate cuts last year “puts the US economy in a good place to weather these storms” like China’s coronavirus.
She added that China’s coronavirus “bears further watching and of course we are keeping a close eye, but right now I am not looking for this to do anything material to our economy.” She expected China to has a “couple of quarters perhaps of weaker growth but then bounce back once this has been resolved and then that to have a temporary impact on the US economy and go away once things have been resolved”.
