“We know a health pandemic is global in scope, and although this has not been called a health pandemic yet, it may get there, we are seeing a global in scope reaction to the virus. As countries move to contain the virus, those actions in and of themselves are disrupting global economic activity, and that way it is an economic pandemic that is suppressing global growth and could even push global growth outside of the U.S. negative in the first quarter.”
— Diane Swonk, chief economist at Grant Thornton, said during an appearance on CNBC’s The Exchange on Feb. 26. She added that while the Fed is taking a wait-and-see approach, it might have to lower interest rates if the economy weakens enough as a result of the coronavirus.
Here is the video of Swonk’s appearance on The Exchange talking about the economic impact of the coronavirus: