US Fed Meeting “Serious Impact on Economic Recovery Without Additional Economic Measures” October 8, 10:01
The minutes of a meeting held last month by the Federal Reserve Board of Governors, the central bank of the United States, have decided to continue large-scale monetary easing, but must be implemented over additional government economic measures. Concerns have been expressed that it will have a serious impact on the economic recovery.
According to the minutes released on the 7th, the meeting first acknowledged that the US economy, which had fallen sharply due to the effects of the new coronavirus, is recovering at a faster pace than expected due to the resumption of economic activity.
On the other hand, participants said that if additional economic measures were not implemented due to the confrontation between the ruling and opposition parties in the parliament, support for low-income groups and small and medium-sized enterprises would be insufficient, which would have a serious impact on economic recovery. Concerns were expressed one after another.
At this meeting, the FRB announced that it would continue its zero interest rate policy until at least the end of 2023 and support the economy for a long period of time, but strongly stated that the government's fiscal stimulus was necessary along with monetary policy for economic recovery. This is the shape I pointed out.
Regarding the additional economic measures, the future of the ruling and opposition party talks is uncertain due to the presidential election, and some people point out that the economy is "second bottom" due to the lack of measures among market participants. It's starting to appear.