Fed maintains interest rate at 0%-0.25%
After a two-day interest rate meeting, the Fed kept the Federal Reserve Fund’s interest rate unchanged at 0%-0.25% and promised to maintain a low interest rate policy for a long time and continue to buy bonds indefinitely if necessary. In a statement by Fed Chairman Powell, he had no possibility of putting a negative interest rate. Regarding the economic outlook, Powell expects that the US second quarter GDP will be worse than the first quarter economic contraction of 4.8%, and it is not excluded that the March unemployment rate announced on Friday (May 8) may have double digits. It seems that negative interest rates are just wishful thinking in the market, and the Fed has no plan at all.
Italy will resume work one after another
From Monday (4th), the Italian factory will be reopened, as will German schools, museums and churches. The UK will announce a timetable for restarting the economy within this week. Despite the epidemic, according to the British Sun, the British Minister of International Trade Liz Truss will meet with US Trade Representative Lighthizer through a video conference this week to discuss bilateral trade issues between Britain and the United States. In the past month, due to the epidemic situation, the negotiations have ceased.
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