FOMC

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.

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.

In an unprecedented move, the Federal Reserve on Sunday cut rates to near zero.

The markets continue to sink on virus fears, as even a 50 basis point rate cut by the Federal Reserve last week didn’t turn the markets around. The Fed meets again next week and many see more easing, but will those efforts prevent recession?