The pandemic of the new coronavirus in the short term will remain a вЂњheavy burdenвЂќ on the American economy, employment, and inflation in the country. This is stated in the report on the July 28-29 meeting of the US Federal Reserve System (FRS) Steering Committee on the open market, published on Wednesday.
The meeting participants вЂњagreed that the ongoing crisis in the health sector in the near future will place a heavy burden on economic activity, employment, and inflation, as well as create significant risks for economic development in the medium term.вЂќ Along with concern about general economic indicators, the meeting participants expressed concern about the risks to the financial system and the growing level of the US government debt. The federal government's debt is currently $26.6 trillion. At the same time, in the spring, the authorities approved a package of stimulating measures for the economy in the amount of more than $2 trillion and intend to approve another one in the amount of at least $1 trillion.
At the end of last month, the Fed kept the rate at the level of 0 вЂ“ 0.25% per annum, as expected by the market, due to the fact that the country's current economic indicators are вЂњsignificantly belowвЂќ the pre-crisis level.