Fed noted extreme uncertainty and significant economic risks due to pandemic

The publication of the minutes of the April FOMC meeting reflected the call of Fed leaders to action to save the economy from the consequences of the coronavirus pandemic.

As a result of the meeting on April 28-29, the FOMC kept the federal funds rate in the range from 0% to 0.25% per annum. The meeting noted that the economic consequences of the pandemic created «extreme uncertainty and significant risks for economic activity in the medium term.»

One source of concern is the likelihood of a second wave of Covid-19 disease later this year. Representatives of the regulator noted that the pessimistic forecast for economic recovery is as real as the basic forecast for improving the situation. According to a pessimistic forecast scenario, experts predict a surge in diseases at the end of this year, which will lead to new restrictive measures, lower real GDP and a jump in unemployment.