REUTERS/Martin Pollard

A fast-spreading virus has killed hundreds of people in China and sickened thousands more, bringing activity in the second-largest economy to a near standstill.

And the scope of the outbreak's economic consequences may only grow, according to the Federal Reserve.

In its latest monetary-policy report to Congress on Friday, the central bank said possible spillover effects of the coronavirus outbreak "have presented a new risk to the outlook."

Visit Business Insider's homepage for more stories.

A fast-spreading virus has killed hundreds of people in China and sickened thousands more, bringing activity in the second-largest economy to a near standstill. And the scope of the outbreak's economic consequences may only grow, according to the Federal Reserve.

In its latest monetary-policy report to Congress on Friday, the central bank said possible spillover effects of the coronavirus outbreak "have presented a new risk to the outlook."

"Data through early this year suggested that growth was steadying," the Fed said. "The recent emergence of the coronavirus, however, could lead to disruptions in China that spill over to the rest of the global economy."

As the coronavirus became increasingly deadly and widespread over the past month, authorities imposed a wave of new restrictions on travel and trade. Businesses and stores have also closed in an effort to contain the outbreak.

A poll by the American Chamber of Commerce in Shanghai found that most US firms with operations in China expected the outbreak to reduce revenue this year. Nearly a quarter said they thought the impact would be significant, with revenue falling by at least 16%.

But the Fed noted that other risks have receded over the past year. While growth has moderated, the central bank said that the overall economy was in a solid place and that recession risks had declined.

"Downside risks to the US outlook seem to have receded in the latter part of the year, as the conflicts over trade policy diminished somewhat, economic growth abroad showed signs of stabilizing, and financial conditions eased," the report said.

Asked on Friday whether he was concerned about the effects of the coronavirus outbreak on the global economy, President Donald Trump demurred.

"I think that China will do a very good job," he told reporters at the White House before departing on Marine One.

Read more: GOLDMAN SACHS: Buy these 10 stocks right now, as they're primed to rocket higher after their upcoming earnings reports

NOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption