The Emergency of the American Central Bank to stabilize the American economy, but crucial to the containment of Coronavirus will eventually be a pandemic. That was on Wednesday, a clear warning of the Federal Reserve Bank (Fed) with a view to the further Outlook for the largest economy in the world. The Fed is more determined, their "full range of tools" to use, to the economic consequences of the Corona to mitigate the crisis, informed the Central Bank.
the growth and employment since the peak of the pandemic in America back a little bit, but were still significantly below the level from the beginning of the year, stressed the Fed. "Of course the economy will depend to a very large extent from the history of the Virus," said Central Bank chief Jerome Powell. The pandemic will continue to "weigh heavily on the economy," warned the Central Bank. The key interest rate remain due to the crisis in the range of 0 to 0.25 percent, it said.
Powell warned that without a containment of the Virus a complete economic recovery was "unlikely". The current economic crisis is the worst since decades, he said. The Fed will lead their Emergency programme for the duration of the crisis, in order to ensure that the economy "will recover as soon as possible," again, said Powell. There is a need for perhaps further fiscal support, said Powell, quite obviously, alluding to the ongoing negotiations in Congress for another stimulus package.
Financial assistance to pay the rent
With a view to the end-of-month expiry at the end of increased unemployment benefits, Powell said, many people in the country are in need of more support. The amount is a matter for the Congress, however, it should be clear that in view of the persistently high unemployment rates, many people are in need of help, to be able to your rent and other bills to pay. The Republicans, from President Donald trump and the Democrats are currently negotiating an extension of increased unemployment benefits and another stimulus package. Powell stressed with a view to the pandemic, the economic Outlook was "unusually uncertain".Updated Date: 30 July 2020, 02:20