Fed officials ensures additional action as virus outbreak dampens economic outlook
U.S. Federal Reserve officials with experience handling crises said that the central bank was open to roll out additional action in order to soften the economic impact of the coronavirus pandemic. As of now, the Fed are aiming to provide assistance to corporate bonds as well as local and state governments.
St. Louis Federal Reserve president James Bullard said on Sunday in a phone interview that “everything is on the table”, referring to another wave of lending programs. He had also expressed concern that the outbreak may cause U.S. unemployment rate to reach over 30% in the second quarter. He furthered that the GDP could be cut down to $2.5 trillion in 3 months.
Minneapolis Federal Reserve president Neel Kashkari told CBS that the central bank was “far from out of ammunition” with more moves in order to stave off a recession. Kashakri, a former Treasury official, had helped supervise a government’s response to the 2008 financial crisis.