SAN FRANCISCO/MEXICO CITY: The Federal Reserve may need to move aggressively to cut borrowing costs to cushion the economy from the effects of the rapid spread of the new coronavirus, which sent global stocks tumbling this week.
Traders of futures contracts tied to the U.S. central bank's policy rate are already betting on it. On Thursday they were pricing in about a 76% chance of the Fed starting to cut rates as soon as next month and trimming an extraordinary three-fourths of a percentage point by September, according to CME Group's FedWatch.