The second wave of coronavirus has started to surface globally. The pandemic has already ruined the world economy and with the ongoing surge in cases, signs of recovery are starting to disappear. The US economy has also got hit critically.
The economy had just started to get stabilized, but the second wave is posing a serious financial threat. The Federal Reserve officials are planning to meet and discuss the ongoing financial situation of the country on Thursday. The meeting will help the Fed come up with a decision on how to help the bad economy.
The meeting is arranged at a critical time as the US is in the middle of an election week and the coronavirus cases are on the rise all around America. The unemployment rate was on the rise during the last few months but the situation was slowly getting better, but it appears that things have again taken a turn for the worse.
The high coronavirus cases might cause lockdowns and shut down many businesses. This will negatively affect the economy. The US government had already announced and released a stimulus package for all the people suffering financially due to the rampant virus. But the aid has expired already, leaving many to suffer. Moreover, there has been no further development on another stimulus package.
The Federal Reserve officials have already stated that they would have to slash their rate to absolute zero percent due to the ongoing situation.
They also added that if a second lockdown would be imposed, the situation will become worse and further help will be required. Many economists also fear a double-dip recession.
The FED is buying bonds, trying to stabilize the situation. Economists realize that there is no other choice. The officials are hoping for help from Congress as they are in definite need of a quick relief package.