Summary
- The Fed kept rates on hold.
- The Fed issued their latest economic projections, which are very bearish.
- The Monetary Report to Congress shows the breadth of the damage done by lockdowns.
This week, the Federal Reserve played the adult in the economic room, stating that the US economy was in the middle of a deep recession and that the road to recovery would likely be long and difficult.
Normally, the Fed’s policy statement uses very neutral and bland language to avoid tipping the public relations scales for either bulls or bears. The latest statement was anything but neutral, as demonstrated by the release’s second complete paragraph (emphasis added):
