Fed latest publications
April’s FOMC statement, released today, confirms that the Federal Reserve (Fed) will continue with its aggressive strategy to deal with the economic fallout and downside risks.
In response to the COVID-19 pandemic, the Fed has announced sweeping conventional and unconventional actions. Based on the uptake in the Fed offerings to date and our expectations for the path economic activity, the Fed’s balance sheet is poised to rapidly increase to around $8Tn, before stabilizing around that level.
The challenges faced by COVID-19 the Fed announced additional $750bn in loan support.With this additional action, the Fed has committed to providing $2.3Tn in loan to support the economy.Given the historic rise in unemployment claims it's not surprising that the Fed has taken further actions to contain the economic fallout.
In an unscheduled and abbreviated statement, the Fed announced an emergency 50bp cut to 1-1.25% in the Fed Funds rate, similar to the response to 9/11.
In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.
Baseline assumes growth of 1.8% in 2020, potential upside emerging. Model-based recession projections suggest probability around 30% over the next 24-months. Moderate job growth and steady unemployment for foreseeable future. Inflation close to 2%, downside risks fading.
The two recurring themes that have determined the course of the global economy and represented the greatest sources of uncertainty in 2019 have been protectionist tensions and the threat of a no-deal Brexit.
Baseline assumes growth of 2.3% in 2019 and 1.8% in 2020. Model-based recession projections suggest probability around 50% over the next 24-months. Moderate job growth and steady unemployment for foreseeable future. Inflation close to 2%, but downside risks remain.