Although the economy is recovering from the downturn caused by the Govt-19 epidemic, the risk of corporate bankruptcy is high in the United States. The US Federal Reserve (Fed) said this in its half-yearly report on monetary policy for Congress on Friday.

According to the report, lower interest rates and renewed economic growth will alleviate the plight of US companies, but “The threat of bankruptcy for SMEs and some large companies is significant“.

Central Bank President Jerome Powell will present the report at a hearing in Congress next week. It will present its own assessment of the state of the economy and face questions from legislators. According to Reuters, they are likely to focus on how much help the US government needs from the federal government to deal with the effects of corona virus controls.

US President Joe Biden is now seeking $ 1.9 trillion (roughly $ 41 trillion) in new stimulus measures in Congress. Last year, Congress approved nearly $ 4 trillion in measures, for example, one-time housing subsidies and small business loans.

An epidemic caused the U.S. gross domestic product (GDP) to fall 3.5 percent last year. The Congressional Budget Office (CPO) forecast in early February that GDP would grow by 4.6 percent this year. President Biden’s planned trigger package has not yet been included in this assessment.

Source: Reuters, CDK

read more

  • Central Bank: Leading US banks may face a severe recession

    All 35 major U.S. banking institutions successfully passed the first round of annual stress tests. The US Federal Reserve said tonight that banks have shown that they can withstand a severe recession and continue to lend.
  • Central Bank: America’s leading banks are in good shape despite the epidemic

    Leading US banks are in good shape despite the negative impact of the Govt-19 epidemic on the economy. As for Andhra Pradesh, it follows from the results of the second round of pressure tests released by the US Federal Reserve (Fed).
  • The central bank did not change its monetary policy before the election results

    As expected, the US Federal Reserve left its monetary policy unchanged today. It has reaffirmed its commitment to do everything in its power in the coming months to revive the US economy, which has been threatened by the widespread Govt-19 epidemic and to face uncertainty in the still unresolved presidential election. Thus the base interest rate is close to zero.
  • Surprisingly, the central bank will not reduce bond purchases

    Surprisingly, the US Federal Reserve (Fed) today maintains current measures to support …
  • The central bank surprisingly cut the base rate to half a percentage point

    The US Federal Reserve today cut the key interest rate by half a percentage point to 1.00 to 1.25 percent due to the negative effects of the corona virus on the economy. The central bank decided to do so after telecommunications between G7 finance ministers and central bank governors. Major stocks of US stock markets immediately responded briefly to the unusually strong actions of the central bank. Most of the profits, but were later eliminated.
  • The central bank will transfer about $ 80 billion from last year’s profits to the government

    The US Federal Reserve (Fed) will transfer $ 80.2 billion (approximately CZK 1.7 trillion) from last year’s profits to the federal government, 12 percent less than the previous year. The bank said this in its initial assessment of last year’s results. Andhra Pradesh writes that the government is using the money raised from the central bank to reduce the budget deficit.
  • The central bank transferred $ 78 billion to the government

    The US Federal Reserve (Fed) transferred $ 77.7 billion from its profits to the federal government last year …
  • The central bank is realizing the revision on the dollar

    Yesterday’s minutes from the US Federal Reserve (Fed) currency meeting came as a surprise to the markets …
  • Central Bank: QE can be reduced only in 2014

    Another pigeon feedback from the central bank got to the US dollar today. President of Chicago …
  • Central Bank: The reaction of the markets was exaggerated

    In his speech, James Bullard, a member of the US Federal Reserve’s governing body, responded to the fall of the dollar on Wednesday …
  • The interest rate is determined by the central bank

    Today’s trading session will provide some interesting basics from the US. In the afternoon (at 14:15 CEST), the United States will first release the April National Employment Report (ATP Report) and then the non-production BMI-ISM Index for April (at 16:00 CEST). However, the focus of investors is mainly in the evening (at 20:00 CEST), when the US Federal Reserve (Fed) determines the base interest rate. It should often remain unchanged in the 0.75 – 1.00% range.
  • The central bank will decide whether to raise interest rates

    The US Federal Reserve (Fed) will decide today whether it is time to raise key interest rates.
  • Central Bank: US economic growth has accelerated slightly

    The U.S. economy has been growing steadily over the past two months, with its pace picking up slightly.
  • Central Bank: Rising prices as a result of import taxes have hit the entire economy

    The rise in prices brought about by import taxes has affected the entire US economy, but inflation is rising slightly in most parts of the country. This was stated by the US Federal Reserve (Fed) yesterday in a routine situation report on the growth of the economy known as the Beijing Book. According to her, the economy continues to grow moderately.
  • Fed: US economic growth stifled by strong dollar

    At the end of last year and the beginning of this year, the vague …
  • Central Bank: US economic growth has accelerated slightly

    Growth in the United States economy accelerated slightly in early autumn, supported by high consumer spending …
  • Central Bank: Growth has increased in most US regions

    Economic growth has recovered in most parts of the United States over the past two months due to better weather. Features of …
  • Central bank rates do not change

    The central bank (US Federal Reserve) was generally expected not to change its core interest rate to 0.25%.
  • Central bank rates do not change

    The central bank left its interest rates unchanged at 0.25%.
  • Central Bank: With rates unchanged, QE3 is still active

    The US Federal Reserve (Fed) left the key interest rate at zero to 0.25 percent, as expected.
See also  "Hard to win": ABBA speaks privately

LEAVE A REPLY

Please enter your comment!
Please enter your name here