Politics

White House considers tax cuts, extra Fed pressure in coronavirus response, report says

Key Points
  • Trump administration officials are considering a tax cut package as part of the White House's economic response to the coronavirus outbreak, The Washington Post reported Friday.
  • Those people also discussed whether the White House should ramp up pressure on the Federal Reserve to cut interest rates, according to the Post.
  • Fears about the spread of the deadly virus have sent the stock market spiraling downward in recent trading sessions.
President Donald Trump takes part in a cabinet meeting in the Cabinet Room of the White House in Washington, DC.
Mandel Ngan | AFP | Getty Images

Trump administration officials are considering a tax cut package as part of the White House's economic response to the coronavirus outbreak, The Washington Post reported Friday, citing five people with knowledge of the planning.

Those people also discussed whether the White House should ramp up pressure on the Federal Reserve to cut interest rates, according to the Post.

Fears about the spread of the deadly virus have sent the stock market spiraling downward in recent trading sessions.

Federal Reserve Chairman Jerome Powell said in a note Friday that the central bank is monitoring the coronavirus for risks it poses to the U.S. economy and pledged it would take action if necessary. He offered no specifics on whether the Fed was considering a rate cut.

Vice President Mike Pence's office is involved in the discussions about the possible economic responses to the coronavirus, according to the Post.

The White House didn't immediately respond to CNBC's request for comment.

The newspaper reported that the economic proposals were not intended to stop the spread of the virus, but rather to ease the economic fears that have gripped global markets.

The administration's ideas for an economic response are in the early stages, the Post reported.

White House officials, including President Donald Trump himself, have worked to inject some calm into the economy, which is in the midst of a massive sell-off.

The fast-spreading disease has killed more than 2,800 people around the world and infected more than 83,000. But only 61 cases have been confirmed in the U.S., and no U.S. deaths have been reported.

National Economic Council Director Larry Kudlow said in a television interview Friday that investors should not "rule out more optimistic options."

"Stocks look pretty cheap to me," Kudlow added.

Read the full report from The Washington Post.

Trump says sell-off due to Wall Street's fear of Democrats
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Trump says sell-off due to Wall Street's fear of Democrats

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