Search ForexCrunch

Commenting on the potential impact of the coronavirus outbreak on the US economy, “the economy will slow down in certain sectors but the slowdown will be temporary,” White House economic adviser Larry Kudlow told CNBC on Friday.

“I don’t think the government should be throwing cash around in short-term rebate-type plans,” Kudlow argued. “More information is needed before action can be taken to help the economy with fiscal measures.”

Market reaction

These remarks failed to help market sentiment improve. As of writing, Wall Street’s three main indexes were losing more than 3% and the 10-year US Treasury bond yield was at fresh all-time lows at 0.675%, down 26.7% on the day.