Despite market washout, the Fed is unlikely to cut rates anytime soon in response to coronavirus

[tacobell fan]

• The market expects the Federal Reserve to cuts rates at least twice this year and possibly three times.
• Fed officials, though, have said they think rates are in the right place considering current economic conditions.
• Interest rate cuts are designed to impact demand issues, but the coronavirus is presenting a supply shock, which monetary policy does little to help.
• Policymakers have said they recognize the coronavirus as a threat and are monitoring.