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Today the markets have focused on the statements of the head of the FED. In his comments, Powell emphasized that a deep and long decline could “permanently harm” economic output, saying that hope for a rapid V-shaped recovery amid the coronavirus pandemic is actually a very difficult situation.
“It may take some time for the recovery to accelerate, and it can turn liquidity problems into solvency problems,” Powell said in a statement.
EDF will use all its tools
Powell also reiterated that the central bank will use all monetary policy instruments “until the crisis passes and the economic recovery continues” and suggested that Congress increase financial measures to reduce the risk of longer-term economic damage.
Federal Reserve Chairman Jerome Powell said negative interest rates are not currently seen as a potential tool to help support the central bank’s anti-virus economy, and the benchmark interest rate is now close to 0%.
The comments reiterated views previously expressed by other Fed officials, many of whom agreed to extend the closings at the expense of economic and commercial activity at the same time, helping to slow the growth of new cases for the virus. Some Federal Reserve officials who made public statements on the subject made more cautious comments about the short and long-term effects of the coronavirus on the economy and financial markets of the United States.
Cleveland Fed President Loretta Mester says she expects unemployment to rise or peak by 20% on Tuesday, and that annual GDP growth will be negative up to 40% in the second quarter and that A gradual economic recovery will begin in the second half of the year.
Markets after the FED President’s statement
Looking at the market after frightening comments from the FED president, we see that the dollar has shown a movement close to falling today. At time of writing, the dollar is trading at the 6.97 level.
When we look at gold, we see that there is an upward movement. Gold is trading at $ 1,711, increasing 0.5%.
When we look at Bitcoin, we see that there has been an increase after the terrifying statements by the President of the FED. Bitcoin is trading at $ 9,093, an increase of 3% at the time of writing.
Borsa İstanbul closed with 100,159 points, an increase of 543 points. The average increase in shares was around 0.55%.
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