The U.S. and several of the world’s major trading powers are dealing with uncertainty surrounding China. Politico says the spread of the coronavirus has killed hundreds of people and sickened tens of thousands in mainland China.
However, at the World Trade Organization gathering in Geneva (Juh-NEE-vah), Chinese officials were quick to “flex their economic muscles” and remind other officials from countries around the world about China’s contributions to worldwide growth.
Federal Reserve Chair Jerome Powell told a House panel this week that the coronavirus will “very likely” affect the U.S. economic growth, but it’s far too early to predict what kind of impact it will have. He also says the central bank doesn’t see any need to adjust interest rates right now as U.S. manufacturing has weakened over the past year.
The outbreak is putting a damper on speculation that China will be able to meet the obligations it agreed to in the Phase One Trade Deal with the U.S. China’s Ministry of Agriculture says the country may have to delay its purchases of $40 billion due to the outbreak, but also says it will fulfill its commitments within a year.