INSUBCONTINENT EXCLUSIVE:
By Steve MatthewsFederal Reserve Bank of St
Louis President James Bullard said he would back interest-rate reductions if the coronavirus develops into a worldwide pandemic, but last
monetary policy this year, said Friday in prepared remarks to be delivered in Fort Smith, Arkansas.
Traders in money markets are starting to
bet the Federal Reserve may be forced into an emergency interest-rate cut if the coronavirus gets much worse
The wagers are driving down benchmark yields in United States Treasuries to record lows
Traders are now pricing a 25-basis-point cut for the Fed at its meeting in March, with another one expected in June.
The S-P 500 plunged
Friday as markets opened in New York and Treasury yields sank to fresh record lows.
Bullard, who has been among the most dovish of policy
The Federal Open Market Committee cut rates three times last year, which puts the Fed in a good position to insure against adverse shocks,
cases of the virus continue to rise elsewhere
what economic impact the virus will have, markets have plunged in the United States , Asia and Europe
The yield on 10-year Treasuries slid Friday to 1.15% before pulling back above 1.2%.