国际英语资讯:U.S. Fed keeps interest rates near zero amid COVID-19 fallout_时事

国际英语资讯:U.S. Fed keeps interest rates near zero amid COVID-19 fallout

"Overall, economic activity will likely drop at an uNPRecedented rate in the second quarter," Fed Chairman Jerome Powell said Wednesday afternoon at a press conference.

"Both the depth and duration of the economic down turn are extraordinarily uncertain and will depend in large part on how quickly the virus is brought under control," he said, adding the central bank is committed to using full range of tools to support the economy in this challenging time.

The Fed cut interest rates to near zero at two unscheduled meetings in March and began purchasing massive quantities of U.S. treasuries and agency mortgage-backed securities to repair financial markets. It also unveiled new lending programs to provide up to 2.3 trillion U.S. dollars to support the economy in response to the coronavirus outbreak.

However, "lowering interest rates cannot stop the sharp drop in economic activity caused by closures and social distancing," Powell said, noting low rates will not spur the economy if rates do not feed through to broader financial conditions, or if households and businesses are unable to get credit.

"Preserving the flow of credit is thus essential for mitigating the damage to the economy and setting stage for recovery," he said.

More than 26 million Americans have applied for unemployment benefits since the COVID-19 epidemic forced widespread business closures in late March, according to the Labor Department.