2020.03.0313:17:00UTC+00G7 Finance Chiefs Pledge To Use Appropriate Tools To Address Coronavirus Impact

Finance chiefs from the world's largest economies have pledged to use "all appropriate policy tools" to address the economic fallout from the deadly coronavirus outbreak.

Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell led a conference call with the G7 Finance Ministers and Central Bank Governors on Tuesday to discuss the coronavirus.

In a statement released following the call, the G7 finance chiefs reaffirmed their commitment to use "all appropriate policy tools to achieve strong, sustainable growth and safeguard against downside risks."

"Alongside strengthening efforts to expand health services, G7 finance ministers are ready to take actions, including fiscal measures where appropriate, to aid in the response to the virus and support the economy during this phase," the statement said.

The statement added, "G7 central banks will continue to fulfill their mandates, thus supporting price stability and economic growth while maintaining the resilience of the financial system."

The G7 finance chiefs noted that the International Monetary Fund, the World Bank, and other international financial institutions also stand ready to help member countries address the human tragedy and economic challenge posed by the outbreak.

"G7 Finance Ministers and Central Bank Governors stand ready to cooperate further on timely and effective measures," the statement concluded.

Earlier in the day, the Reserve Bank of Australia announced its widely expected decision to lower its key interest rate by a quarter point to a new record low of 0.5 percent amid concerns about the coronavirus.

President Donald Trump responded to the news in a post on Twitter, urging the Federal Reserve to follow the Australian central bank's lead and further reduce interest rates.

"Our Federal Reserve has us paying higher rates than many others, when we should be paying less," Trump said. "Tough on our exporters and puts the USA at a competitive disadvantage."

"Must be the other way around. Should ease and cut rate big," he added. "Jerome Powell led Federal Reserve has called it wrong from day one. Sad!"

Trump's tweets come as CME Group's Fed Watch tool currently indicates a 100 percent chance that the Fed will cut rates by 50 points at its next meeting later this month.

Last Friday, Powell said the Fed will "act as appropriate to support the economy" amid the evolving risks posed by the coronavirus outbreak.