North America

  • 2020-06-10 15:07


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: I know you're low to weigh in too heavily on fiscal policy, but given your forecast for unemployment rates, do you think it's important that Congress extend the $600 per week extra unemployment benefits?

    A: I think we try to keep our comments on fiscal policy at a high-level, and I'm come to your specific question. I would just say this. This is the biggest economic shock in the U.S. and world really in living memory. We went from the lowest level of unemployment in 50 years to the highest level in close to 90 years and we did it in two months. Extraordinary.

  • 2020-06-10 15:01


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: I'm struggling with two things that I hope you can provide clarity on. Is the ongoing bond buying program, you say that it's needed to continue the smooth functioning of markets. I guess most of us aren't really seeing the instability in markets right now. Can you give us some clarity of what you see that needs to be smooth at that level and pace? Second is, you know, you were just talking about Fed concerns about small and medium-sized companies going out of business during this.

  • 2020-06-10 15:01


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference on Wednesday:

    Q: I won't ask about regulatory forbearance. It was put into place in various jurisdictions can apply to the mortgage market to prevent banks from foreclosing amid the widespread financial hardships caused by the pandemic. With many of those happening and many businesses and households in dire financial straits, is any consideration being given at the fed to more regulatory forbearance measures to prevent businesses from going under because they can't meet the payments?

  • 2020-06-10 14:57


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference on Wednesday:

    Q: In the projection you didn't change -- the policy makers didn't CHAK their forecast for long-run unemployment, so that suggested you -- you know, that all of you so far don't see necessarily prospects for long-term damage. Still, what kind of data are you looking at here to gauge, you know, the potential for longer-term hits to the economy even as we have something like the May jobs reports that still has at the same time people return from temporary layoff. There can be permanent job losses.

  • 2020-06-10 14:54


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: There have been plenty of comparisons of the Great Depression of the 1930s to the crisis here. Is that scenario sort of that more dire ( indiscernible ) and we're looking at a month traditional and sudden recession? Are you at all concerned that the performance -- the strong performance in the soft market in the last few weeks is disconnected with reality?

    A: I don't think that the great Depression is a good example or likely outcome for a model of what's happening here at all. I really don't. There are so many fundamental differences. First, the government response has been so fast and so forceful.

  • 2020-06-10 14:52


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference on Wednesday:

    Q: I think I understand how the fed might react in the event things come out worse than expected. I don't understand how you might react if things are better than expected, kind of a variant on the other questions. How fast is the commitment to lower interest rates, and things end up better, do you stick with the low interest rates as you projected them, or is it specific what you have in mind, for example, unemployment or inflation that is animating where you might go?

  • 2020-06-10 14:48


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

    Q: I'm curious about your inflation forecasts, which are pretty low cost forecast horizon. I guess given how low you think inflation will be the coming year, why is policy appropriate now and why not throw everything at the kitchen sink at it currently? Can you talk about what urgency you see in returning it back to that 2% target?

    A: The current policy stance is appropriate. Remember, we're using our emergency lending tools to an unprecedented extent. We have asset purchases and won't go lower than this. We're prepared to adjust as appropriate, and rates are at effective lower balances.

  • 2020-06-10 14:44


    WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference on Wednesday:

    Q: I want to ask about the economic projections, and I realized these are more of an educated guess at this point. I guess the committee sees a large output gap the next two years, and yet, the committee did not take any steps today to reinforce your forward guidance. My questions are, first, what are you hoping to learn by waiting? Second, how might that change your response?

  • 2020-06-10 04:00


    By Greg Quinn

    PARIS (MNI) - Global GDP will fall at least 6% this year to usher in the steepest income decline in more than a century, forcing central banks and governments to prolong "ultra-accommodative monetary policies and higher public debt" the OECD said Thursday.

    Output may decline 7.6% in 2020 if there is a second Covid-19 wave, the Paris-based group's report said, warning "the recovery will not gain steam without more confidence, which will not fully recover without global cooperation" improving health and economic outcomes.

    "Both scenarios are sobering, as economic activity does not and cannot return to normal under these circumstances.

  • 2020-06-08 15:30


    WASHINGTON (MNI) - The Fed on Monday expanded the scope of its Main Street lending facility. Here's the text of the announcement.

    The Federal Reserve Board on Monday expanded its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support. The Board lowered the minimum loan amount, raised the maximum loan limit, adjusted the principal repayment schedule to begin after two years, and extended the term to five years, providing borrowers with greater flexibility in repaying the loans. The Board expects the Main Street program to be open for lender registration soon and to be actively buying loans shortly afterwards.