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The crisis “will have a severe impact on economic activity, the labor market and inflation in the short term, as well as a threat to the economy in the medium term,” said the Federal Free Market Committee (FOMC) after a meeting two days.
The United States Federal Reserve did not change the base interest rate, it remained at 0-0.25%. riba FRS representatives emphasized that the interest rate will not change until the economy copes with the effects of the crisis.
The FRS report came shortly after it was discovered that the US economy. USA It had declined 4.8 percent in the first quarter of the year due to the coronavirus pandemic and the quarantine measures imposed.
Economists predict a contraction of up to 40 percent in the second quarter, largely due to a sharp decline in domestic consumption and business investment.
26 million have lost their jobs since mid-March. Americans and big business are already announcing thousands of layoffs due to the pandemic.
“The coronavirus outbreak poses a number of human and economic challenges in the United States and around the world,” the FRS said in a statement.
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