FOMC

Although there’s still no way to tell how long the COVID-19 shutdown will last, or how much economic damage will result, the Federal Reserve’s speedy descent to the zero lower bound will assist the recovery, according to a report.

Federal Reserve Vice Chairman Richard Clarida says the central bank has the tools needed to keep the U.S. out of a deflationary trap, even as the coronavirus deals a severe hit to the economy.

Federal Reserve Bank of Cleveland President Loretta Mester said U.S. unemployment could rise as high as 15% as the U.S. forcibly shuts down important parts of its economy to help contain the coronavirus pandemic.

While experts predict rates will not stay at zero lower bound as long as after the financial crisis, they don’t see a hike for years.

With the Federal Reserve bringing the target rate down to the zero lower bound, communication takes on a vital role, and, if used properly, can enhance Fed actions.

Federal Reserve Bank of St. Louis President James Bullard said the U.S. should declare the equivalent of a three-month break for nonessential businesses to fight the spread of the coronavirus.

Federal Reserve Bank of Boston Eric Rosengren offered an upbeat assessment in the face of the darkening economic crisis, saying the U.S. can withstand the short-term damage caused by the coronavirus pandemic.

With a significant decline in new infections in China, positive news may be ahead, one expert says.

The Federal Reserve continued its moves to minimize the effects of COVID-19 on the U.S. economy.

The Federal Open Market Committee lowered the fed funds rate target to between zero and ¼% in an emergency meeting on Sunday, but while analysts say the move was needed, they feel it will take more to offset the effects of COVID-19.