Rosengren Repeated his opinion that the U.S. unemployment rate will probably be at high levels in the end of 2020 and cautioned against reopening the market too fast after the conclusion of lockdowns geared toward containing the virus.
This absence of containment could finally result in a demand for much more prolonged shut-downs, which lead to decreased investment and consumption, and greater unemployment.
The U.S. central bank transferred quickly to encourage the market by cutting interest rates to near zero and rolling out a ton of emergency financing facilities intended to keep credit readily available for companies and households.
Business consultants and some creditors said the program might not be a great match for lots of the companies.
However, Rosengren explained that should make it appealing to creditors.
These are still early days in the app, and we’re seeing a constant flow of curiosity.