Federal Reserve Chairman Jerome Powell hosts the first virtual Federal Reserve press conference since the coronavirus pandemic started. He takes questions on what more the Fed can do assist the economy. The Fed is not expected to announce any new policy initiatives when its meeting ends Wednesday, but it could provide more details on the unprecedented moves it made to help the economy and financial markets over the past six weeks.
The Fed releases its statement at 2 p.m. ET and could provide more clarity on its view of the damage to the economy from the coronavirus. It may comment on its policy, but it is not likely to reveal anything new about how long it will keep interest rates low.
Fed Chairman Jerome Powell briefs the media at 2:30 p.m. ET.
“They’ve laid out a whole series of initiatives. I think they have to spend time on implementation and evaluation of them and quite frankly I think the June meeting may be the most important Fed meeting in maybe 10 years,” said Rick Rieder, CIO of global fixed income at BlackRock.
Economists said by June, the Fed will have a better idea of the unemployment rate and how the economy is faring, as it starts emerging from the shutdowns.
To battle the impact of the virus, the Fed cut its benchmark interest rate to near zero at a on March 15, and has bought about $2 trillion in Treasurys and mortgage securities. In addition, it announced numerous facilities aimed at easing conditions in multiple parts of the credit market, including corporate debt, mortgages, municipal bonds and commercial paper.
Powell will sound reassuring and reiterate that the Fed is committed to its actions. “I think they’ll do whatever it takes and just a bit more, to be sure,” Rieder said.
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