Question

Coronavirus

What does it mean for the U.S. Economy, Federal Reserve Bank, and U.S. Multinational Corporations' performances? As coronavirus fears shake the U.S. economy, putting Wall Street on pace for its worst performance since the global financial crisis in 2008, as coronavirus infections accelerated. What does it mean for the U.S, Economy, Federal Reserve Bank Policies, and U.S. Multinational Corporations' performances?

Answer 1

The US economy suffered its most severe contraction in more than a decade in the first quarter of the year, as the country introduced lockdowns to slow the spread of coronavirus.

The world's largest economy sank at an annual rate of 4.8%.

The US has tried to cushion the economic blow with nearly $3tn (£2.4tn) in new spending, including direct payments to many families. The Federal Reserve has also taken with a slew of emergency steps, including lowering interest rates to near zero.

share prices have increased in recent weeks after steep declines earlier in the year. Those gains reflect the Fed's intervention, but not its forecast for the economy, said Seema Shah, chief strategist at Principal Global Investors.

With financial markets being backstopped by the Fed for the foreseeable future, they will likely continue to signal a narrative that is very detached from the Fed's own solemn economic assessment."