Fed Voices Extreme Economic Uncertainty

Federal Reserve leaders are worried about a continued spike in COVID-19 cases that could impact the economy longer term, even though locales are reopening for business.

The Fed, which has cut interest rates near zero, sees potential major economic further than what has already taken place with historic unemployment rates.

“In this scenario, a second wave of the coronavirus outbreak, with another round of strict restrictions on social interactions and business operations, was assumed to begin around year-end, inducing a decrease in real GDP, a jump in the unemployment rate, and renewed downward pressure on inflation next year,” said minutes of a recent Fed meeting, as reported by CNBC.