'Policy failure is here': Deutsche Bank warns central banks appear helpless to stop coronavirus recession

The stock market this week has continued trending downward thanks to the economic impact of the coronavirus epidemic, as the Dow Jones Industrial Average plummeted by nearly 1,000 points on Thursday.

CNBC's Carl Quintanilla reports that a new research note from Deutsche Bank claims that central banks around the world might be hard pressed to contain the economic damage that the virus is having on global supply chains, especially they've been slashing interest rates for the past year.

"Policy failure is here," explains George Saravelos, the bank’s global head of currency research, in the research note.

Goldman Sachs recently estimated that the coronavirus would dramatically hit the profitability of American companies, and it now projects that U.S. firms will see zero profit growth in 2020.

"Our reduced profit forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US firms, a slowdown in US economic activity, and elevated business uncertainty," the firm wrote in a note to clients last month.