In a separate statement, the Fed projected Wednesday that the U.S. economy will shrink by 6.5 percent in 2020, followed by a 5-percent gain next year. Powell told reporters that the economic projections were made with the general expectation that the economic recovery will begin in the second half of the year and last over the next couple of years. The Fed also projected interest rates will remain near zero through at least 2022 as policy makers strive to support the recovery of the economy from the Covid-19-induced recession. The Fed cut interest rates to near zero at two unscheduled meetings in March and began purchasing massive quantities of US treasuries and agency mortgage-backed securities to repair financial markets. It also unveiled new lending programs to provide up to $2.3 trillion to support the economy in response to the outbreak.

Source: Manila Times June 11, 2020 14:48 UTC