No Interest rate Hike – US Fed Policy – Recession 2020
The Economy of the Super Power United States is about USD 21 Plus Trillion. It is said to be 1.5 Times than China and about 7.5 times the GDP of India. Most Advanced and Emerging economies in the world are affected severely by the Covid-19.
United States is the most affected nation by the Coronavirus Pandemic – The number of infected cases and death are high. As a result, the Lock down was happened in the March and April 2020 and then the corresponding economic decline in the Country are high.
Most of the Developed nations have confirmed the economic downturn – Recession 2020. The US officially announced it’s recession from the month of February in their country. Due to that, there is a consistent measures are being taken to stimulate the Economy.
This was followed by a massive package of USD 2 Trillion on Economic Stimulus. They also provided like a direct benefit of USD 1000 per month per Head. It is also said that there will be such action in the upcoming months and that more will be given to the People. There is a Stock Market Rally was happening only by the US Fed – Central bank’s move, but not really in the Economy.
In the past few months, the Central bank has dramatically reduced the interest rates to ease the US Economy. An interest rate cut would be beneficial to slightly offset the Country’s economy. The Current interest rate in US is about 0 – 0.25 Percent.
The Central bank said yesterday that it did not intend to raise the interest rates until 2022 and that it would continue to near Zero. It has stated that there is no change in its emergency policies and it would appear for the next few months.
The Real worry is about the Unexpected Jobless claims and the Slowdown in Economy would hurt the Advanced and Emerging Economies. However there is another stimulate is expecting to come to recover the Economy.
Several Rating agencies and Organizations have said that the Emerging economies will recover faster than the Advanced Economies by FY2021-22. At the same time, the Debt to GDP ratio is also important for any economy. However the Super Power Nation is to play aggressively in the Global Economy.
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