The head of the Federal Reserve said Wednesday that the coronavirus is likely to affect China’s economy “in the short term,” but said it remains to be seen if the viral outbreak will impact the U.S. economy.

Fed Chairman Jerome Powell told reporters that coronavirus is a “significant” event, and expects some impact on the Chinese economy as a result of travel restrictions and business closures put in place.

“There is likely to be some disruption to activity in China, and possibly globally, based on the spread of the virus to date,” Powell said.

As of Wednesday, more than 130 people in China and the region had died as a result of coronavirus. More than 6,000 cases have been confirmed, but only five cases have been identified in the United States.

Powell said he did not want to speculate on the macroeconomic effects of the virus on the world and the U.S., noting that the developments are still in their “early stages.” The Fed said it is only concerned about making monetary policy moves within the context of “potential ramifications” to the U.S. economy and the achievement of full employment and stable prices.

“Of course, we are very carefully monitoring the situation,” Powell said.

Powell acknowledged that the Chinese economy is an important part of the global economy.

“When China’s economy slows down we do feel that,” Powell said.

But Powell said 85% of the U.S. economy is domestic, emphasizing that countries geographically closer to China are naturally more exposed to risks facing the Chinese economy.

Powell made the remarks in a press conference following the Fed’s decision to hold rates steady in the target range of 1.50% to 1.75%.

Brian Cheung is a reporter covering the banking industry and the intersection of finance and policy for Yahoo Finance. You can follow him on Twitter @bcheungz.

• Fed holds rates steady in first meeting of 2020 as economy extends expansion

• Fed to start 2020 with heavy scrutiny on the meaning of 'liquidity'

• Trump has tweeted about the Fed 100 times since nominating Jerome Powell

• Dambisa Moyo: Defunding oil companies is a 'naive' way to address climate change

• 'This is the new normal': California businesses pessimistic on phase 2 deal

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.