Federal Reserve policymakers are looking at reviving a Great Recession-era promise to keep interest rates low until certain conditions are met, in a bid to deliver a more rapid recovery from the recession triggered by the coronavirus pandemic.
FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis
Although two warned of the danger of adopting any such policy, citing financial stability risks, the minutes showed that policymakers overall supported giving the public more explicit forward guidance, both for rates and bond purchases, “as more information about the trajectory of the economy becomes available.”
“Members noted that they expected to maintain this target range until they were confident that the economy had weathered recent events and was on track to achieve the Committee’s maximum-employment and price-stability goals,” the Fed said in the minutes. The U.S. economy slipped into recession in February and economic output and employment are still far below pre-crisis levels despite a rebound as restrictions were eased. More than 30 million people were receiving unemployment checks in the first week of June, about a fifth of the labor force.At last month’s policy meeting, the Fed signaled it planned years of extraordinary support for the economy, with policymakers projecting the economy to shrink 6.5% in 2020 and the unemployment rate to be 9.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed Chairman Says Economy Faces New Challenges From CoronavirusFederal Reserve Chairman Jerome Powell is set to tell lawmakers Tuesday that the reopening of the U.S. economy—and the accompanying upturn in spending and hiring this spring—came sooner than central bank officials expected.
Read more »
Fed officials see need for 'highly accommodative' policy ahead, minutes showThe Federal Reserve on Wednesday released the minutes from its June 9-10 meeting, during which it held interest rates steady and said it expects loose policy to prevail until the economy gets back to normal.
Read more »
Nasdaq notches record close to start July after Fed minutes, but Dow slumps as Boeing, Exxon shares weighThe Nasdaq Composite on Wednesday closed at a record high to kick off July but the Dow industrials lagged behind, after minutes from the Federal Reserve's...
Read more »
'This is what a kleptocracy looks like': Billionaire investor Chamath Palihapitiya blasted the Fed for buying foreign companies' bonds | Markets InsiderBillionaire investor Chamath Palihapitiya slammed the Federal Reserve for purchasing foreign companies' bonds in a tweet this week. 'Does feder...
Read more »
Tati Westbrook Claims Shane Dawson and Jeffree Star Fed Her 'Poisonous Lies' About James Charles - E! OnlineTati Westbrook outlines the events that have unfolded since she ignited feud with James Charles last year, and how Jeffree Star and Shane Dawson allegedly contributed to the drama
Read more »
'This is really embarrassing': Warren Buffett doesn't need the Fed to buy his bonds, analysts say | Markets InsiderWarren Buffett is getting unnecessary help from the Federal Reserve, experts say. The central bank's emergency bond-buying program bought debt i...
Read more »