Jerome Powell. Photo: Sarah Silbiger/Xinhua via Getty

The Federal Reserve said on Wednesday that interest rates would remain between the target range of 1.5% and 1.75%.

Why it matters: Fed chair Jerome Powell said developments in the global economy since the last Fed meeting — namely threats posed by the coronavirus outbreak — have not changed the central bank's wait-and-see approach.

What he's saying: "It’s very uncertain ... how far [the coronavirus] will spread and what the macroeconomic effects will be," Powell told reporters at a press conference.

  • Companies are closing China-based stores, while automakers are extending factory closures in China in response to the outbreak. Powell noted there will be "implications in the near-term" for China's economy.

The big picture: As risks like Brexit and a full-on trade war have abated, Powell said there is room for "cautious optimism about outlook for the global economy."

  • In its closely watched policy statement, the Fed downgraded its characterization of U.S. consumer spending to "moderate" from "strong." Powell remained optimistic about the labor market, which has continued to pump out consistent job gains.

What's new: The Fed also announced it would continue to intervene with cash injections "at least through April" to prevent any flubs in money markets.

  • Market-watchers have cited these moves, along with the Fed's Treasury-bill purchases, as a key reason for the stock market's strength.
  • Powell said "many things affect markets," but the Fed's intention with the current program is more technical and not meant to provide stimulus.

The bottom line: The Fed is confident the economy is in a good place. Powell hinted that the current interest rate level is here to stay and only a drastic shift in economic conditions would change that view.

  • This is despite pressure from President Trump, who this week continued attempts to goad the Federal Reserve into further lowering rates.

Go deeper:

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Updated 2 hours ago - Science

Texas and Louisiana face fresh flood threat from Tropical Storm Beta

Tropical Storm Beta slowly approaching the Texas coast on Monday. Photo: National Weather Service/Twitter

Tropical Storm Beta was dumping heavy rains over Texas as it churned its way inland overnight, bringing the risk of "life-threatening storm surge" and flooding to parts of the state and Louisiana, the National Hurricane Center said.

What's happening: The slow-moving storm was causing coastal flooding along areas including the bays near Houston and Galveston in Texas Monday, per the National Weather Service. Texas Gov. Greg Abbott (R) made a disaster declaration and Louisiana Gov. John Bel Edwards (D) declared a state of emergency Monday.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 31,328,238 — Total deaths: 964,839— Total recoveries: 21,503,496Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 6,857,967 — Total deaths: 199,884 — Total recoveries: 2,615,949 — Total tests: 95,841,281Map.
  3. Health: CDC says it mistakenly published guidance about COVID-19 spreading through air.
  4. Media: Conservative blogger who spread COVID-19 misinformation worked for Fauci's agency.
  5. Politics: House Democrats file legislation to fund government through Dec. 11.
  6. World: U.K. upgrades COVID alert level as Europe sees worrying rise in infections — "The Wake-Up Call" warns the West about the consequences of mishandling a pandemic.

Louisville police declare state of emergency as Breonna Taylor decision looms

A demonstrator holds up a sign of Breonna Taylor during a protest in Louisville, Kentucky. Photo: Brandon Bell/Getty Images

The Louisville police chief declared in a memo obtained by news outlets a "state of emergency" for the department on Monday to prepare for Kentucky Attorney General Daniel Cameron's expected announcement on the Breonna Taylor case.

Of note: Louisville has witnessed more than 115 days of protests over the police killing of Taylor, an unarmed Black woman, with calls for all the officers involved to be charged.

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