Global markets have experienced their worst weekly loss since the Global Financial Crisis during the week of February 24. All three major indices in the US – Dow Jones, S&P 500, and Nasdaq – plunged more than 10%, entering into correction territory. Overall, over $3 trillion in market value were erased from US stocks. Coronavirus fears have caused shocks to global supply chains and have driven down demand in economies across the world. Governments are now fearing that containment methods are insufficient, prompting fears of a pandemic as global cases near 90,000.
Economists at Goldman Sachs and Bank of America are now predicting that the Federal Reserve could deliver emergency interest rate cuts. The first cut could come when Federal Reserve Chairman Jerome Powell convenes a meeting on March 18. While it is unusual for the Federal Reserve to issue an unscheduled shift in monetary policy, emergency measures were taken after the collapse of Lehman Brothers in 2008.
Click here to read our report on the Coronavirus Risks for Businesses and Politics.
