U.S. economy expanded amid first wave of virus impact, Fed says

05.03.2020 - Kulakov Vladimir
U.S. economy expanded amid first wave of virus impact, Fed says

The Federal Reserve released a report on Wednesday claiming that the U.S. economy expanded at a moderate rate in the first weeks of the year, with the study conducted during the incipient rollout of the setbacks in the markets brought by the outbreak of the new coronavirus.

“There were indications that the coronavirus was negatively impacting travel and tourism,” the Washington report noted, representing 12 regional reserve banks through Feb. 24.

The survey also remarked that the manufacturing activity also expanded despite some supply chain delays. However, producers from different districts remain weary for some more supply disruptions in the coming weeks.

In terms of employment, the study noted that it grew “at a slight to moderate pace,” as hiring manpower was also affected by the virus outbreak while selling prices increased inexpensively.

 “Some firms, particularly manufacturers, were optimistic that the phase one trade deal with China would reduce goods prices, but some still struggled with tariffs and were concerned about how the coronavirus might affect prices,” the report furthered.

The Fed released this report a day after it imposed an emergency policy rate cut of 50-basis points which was last seen in 2008.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?