Fed Confirms Use of All Measures Amid Economic Recovery Uncertainty

[Asia Economy New York=Correspondent Baek Jong-min] The United States central bank, the Federal Reserve (Fed), once again emphasized its stance to mobilize all means to revive the economy that has plummeted due to the novel coronavirus disease (COVID-19) crisis.

On the 12th (local time), the Fed stated in its semi-annual monetary policy report submitted to Congress that "due to COVID-19, difficulties are being imposed on the U.S. and global economies, making the outlook for economic activity uncertain," and emphasized that "all means will be mobilized for economic recovery."

The Fed also warned that the U.S. economy could fall into a deeper recession in the second quarter, that vulnerabilities in the financial sector may increase in the short term, and that the financial soundness of households and businesses could weaken.

In the preface of this report, Fed Chair Jerome Powell said, "We are all affected by COVID-19," but emphasized that "the greatest burden is being placed on those with the least capacity to bear it," expressing concern about the impact of COVID-19 on vulnerable groups. He has continuously warned about the difficulties faced by low-income groups due to the real economy's impact.

He added, "We are focusing on laying the foundation to return to the strong labor market we saw in 2019."

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