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Dallas Fed President Robert Kaplan crossed wires during early Asian morning on Friday. The Fed policymakers joined the league of FOMC members to turn down the scope of any further rate cuts, at least in the current month, which the markets are anticipating amid coronavirus fears.

Key quotes

The situation around coronavirus (COVID-19) has changed pretty meaningfully over the last couple of weeks.

Fed’s rate cut move can help offset tighter financial conditions.

Fed’s rate cut is not about the current stock market. It is about mitigating tightening that may take place weeks from now.

Normal economic data that we are used to relying on is not very useful.

Companies say they have come to grips to some extent with the supply aspect of coronavirus effect.

FX implications

The coronavirus-led risk aversion continues to dampen market sentiment and increases the burden on the global policymakers, including the Fed, to act. As a result, traders paid a little heed to the Fed policymaker’s comments that tried to placate traders.