{"id":19597,"date":"2020-07-02T17:05:00","date_gmt":"2020-07-02T14:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coronavirus-could-still-spark-us-financial-crisis-fed-warns\/"},"modified":"2020-07-02T17:05:00","modified_gmt":"2020-07-02T14:05:00","slug":"coronavirus-could-still-spark-us-financial-crisis-fed-warns","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coronavirus-could-still-spark-us-financial-crisis-fed-warns\/","title":{"rendered":"#Coronavirus could still spark US financial crisis, Fed warns"},"content":{"rendered":"

“#Coronavirus could still spark US financial crisis, Fed warns<\/strong>”<\/p>\n

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July 2, 2020 |<\/span> 10:05am |<\/span> Updated July 2, 2020 | 10:08am<\/span><\/p>\n

\n The coronavirus pandemic could still plunge the US into a financial crisis even though the economy has started to get back on track, a Federal Reserve honcho warns.<\/p>\n

With infections spiking in several states, St. Louis Fed President James Bullard fears the virus could spark a damaging wave of bankruptcies without \u201cmore granular risk management on the part of the health policy.\u201d<\/p>\n

\u201cEven though we got past the initial wave of the March-April timeframe the disease is still quite capable of surprising us,\u201d Bullard told the Financial Times in a Wednesday interview.<\/p>\n

\u201cIn any crisis, I think we need to keep in mind that there can be twists and turns, there can be another shoe to drop, and that could happ<\/a>en here,\u201d he added.<\/p>\n

Bullard\u2019s comments came amid fears about a resurgence in COVID-19 cases threatening the nation\u2019s economic recovery from the pandemic. Fed officials have expressed concerns that a second wave of the outbreak could depress economic production and drive up the unemployment rate again \u2014 a scenario \u201cno less plausible than the baseline forecast,\u201d according to minutes from the central bank\u2019s June meeting.<\/p>\n

Bullard reportedly used the virus\u2019s continued threat to justify the Fed\u2019s aggressive efforts to support financial markets during the pandemic. The bank\u2019s balance sheet has ballooned as it set out to buy trillions of dollars in assets \u2014 including individual corporate bonds and risky \u201cjunk\u201d bonds for the first time ever.<\/p>\n

Those programs have drawn fire for aiding Wall Street over Main Street \u2014 but Bullard views them as an important \u201cbackstop\u201d in an uncertain time for the economy, according to the Financial Times.<\/p>\n

\u201cWith all these programs the idea is to make sure the markets don\u2019t freeze up entirely, because that\u2019s what gets you into a financial crisis, when traders won\u2019t trade the asset at any price,\u201d Bullard told the paper. \u201cIt\u2019s not my base case but it\u2019s possible we could take a turn for the worse at some point in the future.\u201d\n <\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n

Source<\/a><\/span><\/p>\n

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“#Coronavirus could still spark US financial crisis, Fed warns” July 2, 2020 | 10:05am | Updated July 2, 2020 | 10:08am The coronavirus pandemic could still plunge the US into a financial crisis even though the economy has started to get back on track, a Federal Reserve honcho warns. With infections spiking in several states,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[30939,30940],"class_list":["post-19597","post","type-post","status-publish","format-standard","hentry","category-general","tag-coronavirus-could-still-spark-us-financial-crisis","tag-fed-warns"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/19597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=19597"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/19597\/revisions"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=19597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=19597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=19597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}