Saturday, 11 July 2020
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Fed Staff's Worst-Case Scenario: No Major Recovery Until Next Year: Minutes
Thursday, 9 April 2020 02:08 WIB | FISCAL & MONETARY |Federal Reserve

The worst-case scenario of the staff of the Federal Reserve for the economy is no recovery until next year, according to minutes of the central bank's March 15 policy meeting released Wednesday.

The staff told officials that there were two plausible scenarios for the U.S. economy grappling with the coronavirus. In one scenario, the U.S. economy would start to recover in the second half of the year. The more adverse scenario was that the economy entered a recession with no significant rebound until next year.

Facing this uncertainty, Fed officials responded by slashing interest rates to zero and launching open-ended purchases of Treasury and asset-backed securities. Supporters of the full percentage point cut on March 15 called it "forceful."

A few officials wanted to cut rates only by half-point, the minutes show. There was concern expressed that the central bank would be out of ammunition with its benchmark rate essentially at zero. But some officials said the Fed had other tools to ease monetary policy.

Source : Marketwatch

RELATED NEWS
RBA Highlights Recovery Uncertainties as Second Wave Threatens...
Tuesday, 7 July 2020 14:06 WIB

Australia™s central bank chief highlighted worries among households and businesses about the health and economic outlook, as the nation™s successful run of Covid-19 containment was rocked by a new...

ECB's Lagarde: Economic recovery will be a complicated matter...
Friday, 26 June 2020 15:19 WIB

European Central Bank (ECB) President Christine Lagarde, while presenting at an Online Summit organised by the European Business Leaders' Convention, said that we probably have passed the lowest point...

Bank of England Steps Up Virus Fight With Bond-Buying Boost...
Thursday, 18 June 2020 18:35 WIB

The Bank of England intensified its response to the fallout from the coronavirus by expanding its bond-buying program, taking another step in the uphill battle to lift the economy out of the...

SNB Focuses on Franc Intervention With Rates Kept on Hold...
Thursday, 18 June 2020 14:48 WIB

The Swiss National Bank said aggressive foreign exchange interventions remain its main tool for pushing back against the appreciation in the franc caused by the coronavirus pandemic. K...

Fed Powell Beats Drum For More Government Aid To Bolster Economy...
Thursday, 18 June 2020 03:26 WIB

The U.S. economy is beginning to recover from the worst of the coronavirus crisis, but with some 25 million Americans displaced from work and the pandemic ongoing, it will need more help, Federal Rese...

LATEST NEWS
Dow ends nearly 370 points higher as Nasdaq logs another record close

Stocks ended higher in thin trade Friday, getting a lift from positive news on a coronavirus treatment. The Dow Jones Industrial Average rose around 369 points, or 1.4%, to end near 26,075, according to preliminary figures, while the S&P 500...

Hong Kong Stocks End With Deep Losses (Review)

Hong Kong stocks closed sharply lower Friday, in line with an Asia-wide sell-off, with investors also spooked by fresh infections in the city that have led to the reimposition of containment measures including school closures. The Hang Seng Index...

Oil climbs, but U.S. benchmark ends lower for the week as IEA warns of coronavirus risk

Oil futures climbed on Friday, buoyed by positive results tied to a COVID-19 treatment, but U.S. prices ended lower for the week as a report from the International Energy Agency cautioned that weaker demand caused by the coronavirus pandemic will...

POPULAR NEWS
Gold futures up a fourth straight session to mark another finish at the highest since 2011
Thursday, 9 July 2020 01:11 WIB

Gold futures climbed for a fourth straight session on Wednesday to mark another finish at their highest since September 2011. The move for gold...

Gold futures pull back from a fresh 9-year peak, but hold above $1,800 an ounce
Friday, 10 July 2020 01:31 WIB

Gold futures ended lower on Thursday, pulling back a day after scoring another settlement at the highest since September 2011, but the haven metal...

Gold Futures Slip, Set to Take a Breather after Carving Out Fresh 9-Year Peak
Thursday, 9 July 2020 18:57 WIB

Gold futures edged back early Thursday, giving up some of its gains after the precious metal scored another settlement at the highest since...

Gold Rally to $1,800 Sees ETF Inflows Exceed Full-Year Record
Wednesday, 8 July 2020 15:53 WIB

Gold allure is only getting stronger as 2020 unfolds. Spot prices reached $1,800 an ounce and year-to-date inflows into bullion-backed...