Federal Reserve

Powell and Mnuchin will lead G-7 call on the coronavirus Tuesday

U.S. Treasury Secretary Steven Mnuchin gestures as he talks with U.S. Federal Reserve Chairman Jerome Powell during the G-20 finance ministers and central bank governors meeting in Japan on June 8, 2019.
Kim Kyung-Hoon | AFP | Getty Images

Global financial ministers and central bankers will hold a conference call on Tuesday to coordinate the financial and economic response to the coronavirus.

The teleconference call will be led by Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell on Tuesday at 7 a.m ET, CNBC's Steve Liesman reported. Representatives of the Group of Seven industrialized nations will attend the call.

It will be a "coordinating call" for the financial and economic response to the virus, according to a source.

A communique is scheduled to be released after the call, CNBC has learned.

The statement does not specifically call for new government spending or coordinated interest rate cuts by central banks, a G-7 official with direct knowledge of the deliberations told Reuters on Tuesday.

In the statement, expected on Tuesday or Wednesday, the G-7 countries will pledge to work together to mitigate the damage to their economies from the fast-spreading epidemic, the source told Reuters on condition of anonymity due to the sensitivity of the matter. The language of the statement is subject to change as it is still under discussion, the source said.

Global financial markets rallied sharply on Monday as central banks from Japan, Britain and France followed the U.S. Federal Reserve in saying said they stood ready to support the global economy and the French finance minister promised "concerted action." 

The Dow Jones Industrial Average posted its biggest gain since March 2009, jumping 5.1%. The 10-year Treasury yield hit a record of 1.03%.

Reuters contributed to this report.

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