Coronavirus Fears and Macroeconomic Expectations

The Federal Reserve cut interest rates on March 3, 2020, in response to COVID-19. On March 5 and 6, I surveyed over 500 consumers about their concerns about COVID-19, awareness of the Fed's announcement, and macroeconomic expectations. Most consumers were concerned about effects of COVID-19 on the economy, their health, and their personal finances. About 38% were aware that the Fed had cut interest rates. Greater concern is associated with higher inflation expectations and more pessimistic unemployment expectations. I informed respondents about the Fed's announcement, which led some consumers to become more optimistic about unemployment and revise inflation expectations downward.