The u.s. central bank paints a gloomy picture of the economy in the coming time.
the Unemployment rate will remain high in the coming year, says the bank. In the UNITED states, the unemployment rate will rise to 9.3 percent.
And it will be ‘unusually uncertain’, how quickly the economy can get on track again.
It will largely depend on how it will go with to contain coronavirusset, says governor Jerome Powell in a comment Wednesday night local time.
– A full recovery will probably not take place until people have confidence that it is safe again to engage in a wide range of activities, he says.
Powell calls for additional financial support to the americans and the UNITED states’economy from the politicians in Washington.
– There is a need for direct financial support in order to help some people, he said.
– Financial support can make a critical difference in reducing the long term damage on the economy.
the central Bank or the Fed, which is an abbreviation for Federal Reserve – have Wednesday evening after its two-day policy meeting decided to maintain interest rates unchanged.
– The u.s. central bank is doing what it can to ensure more growth and employment in the UNITED states. It is perfectly natural to continue the accommodative monetary policy, as the american economy is hit by the biggest crisis since The Great Depression in the 1930s, says Allan Sørensen, chief economist at the confederation of Danish Industry (DI).
– the Interest rate is knocked down to zero, and, together with the big opkøbsprogrammer try the u.s. central bank will continue to give the economy a shot of vitamins, he says.
It was in advance expected that the Fed would continue to keep interest rates in the range between 0.0 and 0.25 percent.
There are not any expectations of interest rate increases over the next few years, points out Mikael Olai Milhøj, who is senior analyst at Danske Bank.
– The u.s. central bank will be sure that an economic recovery is robust before it begins to think about whether to tighten monetary policy again, he writes in a comment.
