xysoom
Matrosen-Obergefreiter
Joined: 26 May 2020
Location: China
Online Status: Offline
Posts: 64
|
| Posted: 12 June 2020 at 09:17 | IP Logged
|
|
|
Economy may need 'more support' for robust recovery
The Federal Reserve left interest rates untouched and
near zero Wednesday amid coronavirus pandemic.¡°It may
well be the case that the economy will need more support
from all of us if the recovery is to be a robust one,¡±
Fed Chair Jerome Powell said.The Fed said it intends to
keep the benchmark between 0% to 0.25% ¡°until it is
confident that the economy has weathered recent events
and is on track to achieve its maximum employment and
price stability goals.¡±Visit Business Insider's homepage
for more stories.
¡¡¡¡WASHINGTON (Reuters) - The Federal Reserve on
Wednesday left interest rates near zero and repeated a
vow to use its ¡°full range of tools¡± to shore up the
U.S. economy amid an ongoing coronavirus pandemic that
will not only slam growth in the near term but pose
¡°considerable risks¡± in the medium term as well.¡°We
are doing all we can¡± to help American households and
businesses weather the public health emergency, Fed Chair
Jerome Powell told journalists at the end of a two-day
policy meeting that was held via videoconference. He
added that the novel coronavirus could threaten economic
growth for another year.¡°We will continue to use our
tools to ensure that the recovery, when it comes, will be
as robust as possible.¡±For now, he said, monetary policy
is calibrated appropriately, but added that could change.
¡°It may well be the case that the economy will need more
support from all of us if the recovery is to be a robust
one,¡± Powell said.To get more news about
Zerodha, you can visit wikifx news official
website.
¡¡¡¡In a matter of weeks the U.S. economy has gone from
historically low unemployment to seeing more than 26
million people file for unemployment benefits and the
sharpest plunge in activity since the Great Recession, as
authorities across the country shut down large swaths of
industry and commerce to slow the spread of the
virus.Gross domestic product declined at a 4.8%
annualized rate in the first quarter, ending the longest
expansion in U.S. history, the Commerce Department
reported earlier on Wednesday.Powell said he expects
second-quarter GDP to shrink by double digits and for
there to be significant increases in unemployment. It
also will ¡°take some time¡± for consumers to start
spending again once the economy begins to reopen, he
said.In its statement the rate-setting Federal Open
Market Committee sketched the extent of the pandemic's
effect so far, noting that ¡°weaker demand and
significantly lower oil prices are holding down consumer
price inflation¡± and that ¡°disruptions to economic
activity here and abroad have significantly affected
financial conditions and have impaired the flow of credit
to U.S. households and businesses.¡±
¡¡¡¡The health crisis ¡°will weigh heavily on economic
activity, employment, and inflation in the near term, and
poses considerable risks to the economic outlook over the
medium term,¡± the Fed said, adding that it ¡°is
committed to using its full range of tools to support the
U.S. economy in this challenging time.¡±¡°The more
significant comment is that the FOMC is concerned about
the downside risk to the economic outlook over the medium
term, suggesting they will remain extraordinarily
accommodative in policy for several years to come,¡± said
Guy LeBas, chief fixed income strategist at Janney
Montgomery Scott in Philadelphia.¡°When they stick their
necks out and say they will use all their ammo, that's a
significant statement of support,¡± LeBas said.U.S. stock
markets pared some of the day's strong gains after the
release of the Fed's statement before moving higher later
in the session. The benchmark S&P 500 remained on track
for its largest daily gain in nearly two weeks.
¡¡¡¡Yields on U.S. Treasury securities were little moved
by the statement, while the dollar edged lower against a
basket of key trading partner currencies.Securities
purchasesThe meeting was the first held by the Fed since
it took emergency steps in March and April to stabilize
financial markets, slashing interest rates to near zero
and throwing a credit lifeline to businesses and local
governments.The Fed said it expects to maintain the
target range for its benchmark overnight lending rate at
the current 0% to 0.25% ¡°until it is confident that the
economy has weathered recent events and is on track to
achieve its maximum employment and price stability
goals,¡± the same phrasing it used in its last policy
statement on March 15.It also said it will continue to
buy U.S. Treasuries and agency residential and commercial
mortgage-backed securities in the amounts needed to
support smooth markets, and to offer large-scale
overnight and term repurchase agreement operations.
|
Active Topics 
Memberlist 
Search 
Help
Register 
Login
U47.org Forum :: The Cadet School
Topic: Economy may need ’more support’ for robus
