The Week Ahead: Federal Reserve Talks National Net Worth

On Thursday, March 12, the Federal Reserve will release its data on the Financial Accounts of the United States, which includes data on transactions and levels of financial assets and liabilities, by sector and financial instrument and full balance sheets, including net worth, for households and nonprofit organizations, nonfinancial corporate businesses, and nonfinancial noncorporate businesses.

The Federal Reserve recently reacted to the coronavirus outbreak by cutting interest rates by half a percentage point in an effort to boost the U.S. economy.

“The fundamentals of the U.S. economy remain strong,” the Fed said in a statement on Tuesday. “However, the coronavirus poses evolving risks to economic activity.”

President Donald Trump sent out a series of tweets Tuesday morning, saying the Australian Central Bank cut interest rates and stated it will most likely further ease in order to make up for the slowdown caused by the coronavirus.

“Other countries are doing the same thing, if not more so,” Trump said on Twitter. “Our Federal Reserve has us paying higher rates than many others when we should be paying less. Tough on our exporters and puts the USA at a competitive disadvantage. Must be the other way around. Should ease and cut-rate big. Jerome Powell of the Federal Reserve has called it wrong from day one.”

A report by Politico noted that Jerome Powell, Chairman of the Fed, addressed Congress in February and said he did not see a need to adjust interest rates. He told lawmakers, “the current stance of monetary policy will likely remain appropriate.”

Powell also said that the virus could “lead to disruptions in China that spill over the rest of the global economy” and there will “very likely” be some effect on the U.S.

In a press conference following the announcement, Powell stood by the Fed’s decision to cut interest rates and noted he is confident in the strength of the U.S. economy and that it’s “going to get to the other side of this.”

Here's what else is happening in The Week Ahead:

• CFPB Update to Congress (March 10)