The fed discussed the possibility of a second wave COVID-19
Members of the Committee on open markets FRS of the USA has considered the use of mechanisms to limit the yield, and also assessed as a possible pessimistic scenario of the second wave of the coronavirus, should be published on Tuesday, the minutes of the meeting 9-10 June.
During the meeting they discussed the limitation of the yield mechanism that was used by the fed during and after the Second world war and which is already used by the Bank of Japan and Reserve Bank of Australia. According to the participants, such an approach can control the government bond yield and may not require major purchases by the Central Bank of government securities, although under certain circumstances this need may emerge.
"Almost all the participants were given to understand that they have a lot of questions about the cost and profitability of such approach", — the document says.
It was also noted that the probability of a negative development of the situation with coronavirus, the opportunity to strengthen the dynamics of the recession, tensions in us-China relations can present short-term risks to financial markets.
In the assessment of the economic situation States that the US GDP for the second quarter is likely to show a "historically large decline," although there has been some improvement in the labor market, where in may there was a decrease in unemployment of 1.4%.
Given the fears related to pandemic coronavirus, the Committee came to the conclusion that "a more pessimistic Outlook was no less likely than the baseline forecast".
At the end of the meeting, the regulator expected kept its benchmark interest rate at zero to 0.25% per annum, noting that he plans to keep it at this level until 2022.
Relevant data on the situation of COVID-19 in Russia and the world presented on the portal stopmanager.of the Russian Federation.