At the FOMC 9-10 June meeting, the Fed reported that the biggest drop in economic activity after the 2nd World War is likely, while financial support may be inadequate.
The minutes of the last meeting of the US Central Bank (Fed) revealed that the economy may need the support of highly coherent monetary policy for a while and it will be important to provide more clarity about the federal fund rate and asset purchases in the coming months.
The Fed has released the minutes of the Federal Open Market Committee’s (FOMC) meeting on June 9-10.
It was noted in the minutes of the last meeting that FOMC members unanimously decided to keep the policy interest rate within the range of 0-0.25 percent, but the intentions of the committee regarding future monetary policy decisions could become more clear as the economic outlook becomes clearer.
“In particular, most respondents stated that the Committee should communicate more clearly about the federal funding rate and provide more clarity on treasury bonds and mortgage-backed securities purchases, as the Committee learned more about the course of the economy,” the minutes said. statement took place.
Risks to the economic outlook continue
“Participants commented that the extraordinary uncertainty and significant risks to the economic outlook remain,” the participants noted in the minutes that they shared the possible consequences of the resumption of economic activity and the impact of public health initiatives on economic activity and employment. evaluation was included.
It is noted that the financial support for households, companies and local governments may be insufficient in the minutes, in which the data are reported to be the biggest drop in economic activity after the 2nd World War in the second quarter of this year.
“The various participants stated that the economy may need the support of highly harmonious monetary policy for a while and it will be important to provide more clarity for the Committee on the federal fund rate and asset purchases in the coming months,” the minutes said. statement took place.
It was noted in the minutes that the liquidity conditions continued to improve overall, but that pressure was still seen in some markets.
