Off The Wire
Fed's Mester says economic drag of China virus could spill over to U.S.
(Reuters) - The epidemic caused by the coronavirus that has killed hundreds and sickened tens of thousands in China could drag on the U.S. economy this quarter, Cleveland Federal Reserve Bank President Loretta Mester said Friday.
“I expect that, certainly in China and perhaps in Asia, the first quarter numbers are going to be weaker; there could be spillover to the U.S. economy as well in the first quarter and it remains to be seen by how much and for how long that will persist,” Mester told Bloomberg Television. “But in general I am seeing that as a risk to my forecast - I haven’t marked down my forecast.”
Writing by by Ann Saphir; Editing by Chizu Nomiyama