Markets have reacted negatively to a dour economic outlook from the Fed on Wednesday. The U.S. central bank forecast a 6.5% contraction in U.S. gross domestic product for 2020, with a 5% rebound in 2021 and 3.5% growth in 2022.
The Fed also ruled out any hikes of its federal funds target rate, which currently sits at an historic low of 0-0.25%, through 2022. The Fed's outlook has exacerbated skepticism surrounding the much-hoped for "v-shaped" recovery for the global economy as it emerges from the coronavirus pandemic. "After the initial reopening bounce, the path to full employment will become a lot more challenging," Fidelity International Head of Global Macro Anna Stupnytska said following the Fed's announcements on Wednesday.
"In addition, risks related to subsequent waves of infection, the upcoming elections, weak global recovery and trade tensions would likely complicate the recovery path."
The stock market has been going up like everything is great, but it's not. The coronavirus is still around, and it's spiking again in some places. As a result, shutdowns may occur again.
Time for some positive vaccine news or a false unemployment number to boost number.
go away in May is late this year. 😀
The fear mongers are out in force.
at least a narrative of pending doom.