Warren Calls for Fed to Slash Rates Due to Coronavirus Concerns

Senator Elizabeth Warren is urging the Federal Reserve to lower interest rates immediately in response to the coronavirus outbreak, amid concerns that the virus could lead to a recession.

"We need to act now to prevent the coronavirus from causing an economic downturn," Warren said in a statement. "The Fed has the tools to do this, and they need to use them."

Warren's call for an emergency rate cut comes as the Fed is already scheduled to meet on March 17-18 to discuss interest rates. The Fed has already cut rates twice this year, but Warren believes that more action is needed to prevent a recession.

The coronavirus outbreak has already had a significant impact on the global economy. Stock markets have plunged, and businesses are experiencing disruptions to their supply chains. The outbreak has also led to a sharp decline in travel and tourism.

Economists are increasingly concerned that the coronavirus could lead to a recession. A recent survey by Bloomberg found that economists now believe there is a 25% chance of a recession in the next 12 months, up from 15% in January.

The Fed has a number of tools at its disposal to combat a recession. One of the most important tools is interest rates. By lowering interest rates, the Fed can make it cheaper for businesses to borrow money and invest. This can help to stimulate economic growth.

Warren is not the only one calling for the Fed to cut rates. A number of other economists and policymakers have also called for the Fed to take action to prevent a recession.

The Fed is expected to announce its decision on interest rates on March 18. It is possible that the Fed will cut rates by a larger-than-expected amount in response to the coronavirus outbreak.