The next few months will be “important in judging the real story,” but it's clear from the Fed’s economic projections and Powell’s cautiously optimistic tone that the central bank’s work has gone from preventing a depression to encouraging a recovery, which is good news for the U.S. economy.
Here are the main takeaways from the Fed announcement:
+ Buying bonds “at least at current pace”
+ Sees rates at zero through 2022
+ No negative rate dots
+ Expects 9.3% unemployment rate end of 2020, 6.5% end of 2021
+ Sees GDP falling 6.5% in 2020, rising 5% in 2021
Here are the main takeaways from the Fed announcement:
+ Buying bonds “at least at current pace”
+ Sees rates at zero through 2022
+ No negative rate dots
+ Expects 9.3% unemployment rate end of 2020, 6.5% end of 2021
+ Sees GDP falling 6.5% in 2020, rising 5% in 2021
