A broad measure of Wall Street, the S&P 500 is on its way to its worst decline in more than two months.
US crude fell 6.2% to $ 38.34.
The growing number of coronavirus cases in the United States has led to a second wave of ner infections on Wall Street that could force many businesses to shut down again soon after they reopen.
Treasury Secretary Steven Manuchehr said the US economy would not shut down again despite the growing number of cases.
“We can’t shut down the economy again,” he told CNBC. “I think we’ve learned that if you shut down the economy, you’re going to do more damage, and not just economic damage, there are more areas,” he told CNBC in an interview.
Munuchin says more than a trillion dollars will be sent to the economy next month.
While Powell acknowledged that the May jobs report showed two and a half million jobs in the economy, it was a welcome surprise, noting that millions of Americans would never return to their jobs and remain unemployed year after year.
The Fed project unemployment rate fell from 13.3% in May to 9.3% at the end of the year. Before the epidemic, in February, the unemployment rate was 3.5, below 50 years. 3.5%.
Gross domestic product – a broad measure of the country’s economy – is expected to decline .5.5% this year before returning.
The central bank is expected to set foot on the stimulus pedal for the expected future. The central bank does not expect to raise interest rates this year or in 2021. According to the so-called dot plot, the committee members mapped out monetary policy expectations. Even in 2022, only two policymakers expect this increase.
“We’re not thinking about raising rates – we’re not even thinking about raising rates,” Fed Chairman Jerome Powell told reporters at a news conference.
Generally low interest rates are good for stocks because it is cheaper for companies to take orrow. At the moment, however, a lower rate for a shorter period means that the economy will not recover for some time.
President Donald Trump said in a tweet that the Fed was often wrong, adding “we will have a very good third quarter, a great fourth quarter and one of our best years of 2021.”
When states across the country have revived their economies, people are being forced to live with the virus. A closely monitored coronavirus model from the Institute of Health Metrics and Evaluation at the University of Washington, which was updated on Wednesday, now predicts about 170,000 coronavirus deaths in the United States by October 1.
IHME Director Dr. Christopher Murray said in a statement, “If the U.S. fails to test growth in September, we may face a growing trend of epidemics in October, November and the following months.” Statement.
According to Johns Hopkins University, the number of global cases continues to rise, with about 7.4 million confirmed infections reported. Brazil, Russia, the United Kingdom and India have the second highest number of cases after the United States. More than 415,000 people have died worldwide.
Many investors were betting on a quick recovery of the world’s largest economy.
On Thursday, S&P was negative for the year again and Nasdaq was back below the main threshold.
But with the deadly economic projections from experts, including the US Federal Reserve, the rise of coronavirus cases in the United States continues to cause continued pain for companies and employees. The ruthless attitude can be hard to ignore now.
Stephen Ines, chief global market strategist at Axi Corp., said Thursday that markets are having trouble digesting headlines that indicate a new virus outbreak in the United States. “A secondary outbreak is nothing to sneeze at,” he said.
– Biswas Karimi, Arman Azad, Joe Sutton, Betsy Klein and Paul La Monica contributed to the reporting.