The United States Federal Reserve is “committed” to doing everything it can against the economic crisis caused by the pandemic

Federal Reserve Chairman Jerome Powell warned on Wednesday that in the second quarter the United States economy is going to contract to an “unprecedented” level, in a day in which the data of the first quarter indicated a hard blow of the coronavirus pandemic to the economy. To contain this situation, the agency is “committed” to using its entire arsenal of measures, he added.

“Economic activity is going to fall at an unprecedented rate in the second quarter”, Powell warned. “The American economy may need more support,” he added.

The Federal Reserve warned that the coronavirus pandemic is a “considerable” risk to the economy and decided this Wednesday to keep its guide rate at a level between zero and 0.25%.

Powell noted that both “The depth and duration of the economic downturn are extremely uncertain and will depend largely on how quickly the virus can be controlled.”

The United States is the country where more people have died from the new coronavirus, with more than 58,000 deaths from this respiratory disease.

The crisis “It will weigh heavily on economic activity, employment and inflation in the short term, and poses a considerable risk to the forecast for the economy in the medium term”Concluded the Fed’s Monetary Policy Committee (FOMC) after a two-day meeting.

The US issuer said it is “committed” to using its entire arsenal to shore up the economy in these difficult times.

This Wednesday, the Commerce Department data showed that the US economy contracted 4.8% in the first quarter over the fourth of last year, marking the most pronounced decrease since the Great Recession of the last decade.

The measurement used in the United States compares a quarter with the previous one and makes a projection on the evolution in the year, if the current growth rate is maintained.

“Disruptions to economic activity here and abroad have significantly affected financial conditions and reduced the flow of credit to American households and businesses. “, indicated the Fed.

The Federal Reserve Monetary Committee said it will maintain interest rate levels until it is “confident” that the economy has managed to weather recent events and the country “is on track to achieve maximum employment and stability goals. Of the prices”.

With information from AFP

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