Corona-crisis: US-based Bank is advising on the further course
The pandemic has the US firmly in its grip. The economy can not fully recover, the unemployment rate is high. The Central Bank has already decided many of the Contingency. Now you is likely to encourage especially the Congress and the government to further Action.
The decision-makers of the Federal Reserve (Fed) to advise in the midst of the Corona-crisis about the future course of the U.S. Central Bank. The estimates of Central Bank chief Jerome Powell in particular on the economic situation expected.
He had recently warned that the economic recovery depended directly on the future course of the pandemic. Analysts expect that Powell is expected to speak to the stabilisation of the economy, in General, for a further economic stimulus package and an extension of unemployment assistance. The negotiations to such an aid package between the Congress and the government are stuck for weeks in a cul-de-SAC.
President Donald trump is the Republicans want, but only a limited stimulus package in the amount of several hundred billion dollars, the Democrats, was recently a package of measures in the amount of about two trillion dollars. Congress and the administration have decided since the beginning of the Corona-crisis stimulus packages amounting to almost three trillion US dollars, equivalent to more than ten percent of annual economic output.
The pandemic, slowing down the economy, the world’s biggest economy continue. Unemployment had fallen again in August to 8.4 percent. But around 30 million people currently receive some Form of unemployment assistance and the escalation of the pandemic in February, the unemployment rate was 3.5 percent.
Trump, the bidding in November to a second term in office, predicts a very rapid economic recovery until the end of the year. The forecasts of most analysts, however, are more cautious.
The Fed has already cut its key rate to near Zero and will keep the interest rate for the foreseeable future so low. Analysts expected that the scheduled Meeting of the money market Committee of the Central Bank, therefore, no far-reaching new decisions.
Because of the pandemic, the Fed has cut since February its key interest rate, bond purchases multiplied and extensive loan programmes, in order to stabilize the financial markets and the real economy. According to experts, the crisis measures taken by the Fed are already more comprehensive than those after the global financial crisis of 2008/2009.
Currently reported in the United States every day, around 40,000 of Corona infections. In total, there are data from the Johns Hopkins University, according to nearly 6.6 million confirmed infections with the causative agent of Sars-CoV-2, and about 195,000 deaths.