Fed warns stock market of a second recession if the coronavirus pandemic isn’t brought under control

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OPINION: Our economic recovery -- or lack thereof -- will come down to the health of the American people. Wear a mask. And Congress needs to do more to support individuals and small businesses.

Officials and staff economists at the Fed caution that a second wave of recession could sweep over the country later this year if the coronavirus pandemic isn’t brought under control, according to a lengthy summary of the Fed’s policy meeting held on June 9-10.

The stock market, however, has broadly shrugged off those infections. The S&P 500 index SPX, +0.45% rose 0.5% on Wednesday after surging 20% in the second quarter, which ended Tuesday. The Fed’s baseline scenario assumes that a gradual return of economic activity would not lead to a spike in COVID-19 cases, which has already killed more than 125,000 Americans. Social distancing and other public-health measures would keep the virus in check.

“A number of participants [among the five Fed governors and 12 district bank presidents] judged that there was a substantial likelihood of additional waves of outbreaks, which, in some scenarios, could result in further economic disruptions and possibly a protracted period of reduced economic activity,” according to the minutes.

 

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These are the chickens coming home to roost

EconomicsOverHealth doesn't make sense....... 🤷🏽‍♂️

While pumping it everyday with unlimited QE! What a hypocrisy!

We don't need another stimulus package for those Americans out of work.

huffandpuff We need another stimulus package as half of Americans are out of work.

Let summer pass because virus 🦠 dies in heat (except for Arizona heat) and lock us Down in the fall. Thus lowering heating oil and fuel prices and assuring Trumps re-election.

MaskedRecovery 😷🎭

Oppression tool number 673: guilt

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