Stating that there is a second wave risk in the Kovid-19 outbreak, US Federal Reserve Chairman Powell said that they will continue to take measures, and he is concerned that a second wave will damage confidence.
US Federal Reserve (Fed) Chairman Jerome Powell stated that there is a second wave risk in the new type of coronavirus (Kovid-19) epidemic and stated that they will continue to take measures, and he is concerned that a second wave will damage trust.
At the meeting, Powell said by teleconference, the Fed is managing the overall stability of the financial system.
Pointing out that there was an unprecedented emergency, Powell said that they saw that the Fed should use its vehicles to the fullest. “We crossed many red lines that were not crossed before,” Powell said. found the assessment.
Reminding the steps taken by the Fed against the economic effects of the Kovid-19 epidemic, Powell stated that the current global crisis is not caused by the weakness of the financial system, it is a problem in the real economy.
“Negative interest rate is not a suitable tool in the US”
On a question about the negative interest rate, Powell stated that they lowered the federal funds rate and promised to keep the policy rate at zero for a long time.
“Some banks have decided to use negative rates. We don’t think this is a suitable tool in the US,” Powell said. said.
“There is clearly a second wave risk in the epidemic. It will be compelling. Of course we will continue to take action against it,” Powell said. he spoke. Fed Chairman Powell expressed his concern that a second wave in the outbreak would damage confidence.
Stating that the complete recovery of the economy depends on people feeling safe, Powell stated that the second wave in the epidemic may cause a weak recovery in terms of balance sheet and inflation.