Federal Reserve Chair Jerome Powell stressed the importance of keeping the coronavirus contagion contained as the US economy bounces back from its deepest contraction in decades. Jerome Powell, Chairman of the Federal Reserve, and Treasury Secretary Steven Mnuchin will speak today at 16:30 GMT and FXStreet's analyst Joseph Trevisani expects an upbeat speech to reanimate risk trade. His remarks were published on the Fed website on Monday.
Some states have begun to dial back their reopenings as coronavirus infections surge. "While this bounceback in economic activity is welcome, it also presents new challenges-notably, the need to keep the virus in check". "'While recent economic data offer some positive signs, we are keeping in mind that more than 20 million Americans have lost their job, ' noted Mr. Powell's statement".
With output and employment still far below their pre-crisis levels, he said, "the path forward for the economy is extraordinarily uncertain and will depend in large part on our success in containing the virus", again saying that a full recovery is unlikely until people are confident it is safe to be out and about.
Congress has committed almost $3 trillion in aid.
But Democrats and Republicans are split on the size of any new rescue package and what elements it should contain.
"The Fed has slashed its key interest to near zero and pumped Dollars 2 trillion into purchases of Treasury securities and mortgage-backed securities plus providing additional support through 11 special programs to facilitate the functioning of credit markets for businesses and consumers and borrowing by state and local governments".
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.