FOMC

Federal Reserve Vice Chairman Richard Clarida mixed a sobering acknowledgment of the damage inflicted on the U.S. economy by the coronavirus pandemic with an optimistic outlook for the second half of the year.

Chicago Fed president said there is no reason to raise rates "anytime soon."

The coronavirus pandemic could do lasting harm to U.S. productivity unless the nation adapts to the realities of living with COVID-19, says Federal Reserve Bank of Richmond President Thomas Barkin.

Federal Reserve Chairman Jerome Powell spoke with his Chinese counterpart on the eve of an emergency Fed interest rate cut March 3.

The U.S. economy will likely need more fiscal stimulus as it weathers a “severe” contraction from the effects of coronavirus-prompted shut downs, according to Federal Reserve Bank of Dallas President Robert Kaplan.

Thursday’s jobless claims at 3.839 million, weaker income and spending data show COVID-19 continues to dampen economic activity.

The FOMC action came as GDP dropped 4.8% in the first quarter and pending home sales plunged 20.8% amid the pandemic.

The Senate Banking Committee is preparing to approve the stalled nomination of Judy Shelton to be a member of the Federal Reserve Board next week, according to two Republicans familiar with the planning.

The Federal Open Market Committee meeting that began Tuesday will be unique because rates remain at the zero lower bound and the Fed has taken many actions to ensure smooth markets since the economic shutdown to contain the coronavirus.

Economists also expect the Fed's balance sheet to more than $10 trillion as policymakers look to lift the country from a recession brought on by the coronavirus pandemic.