Minutes of FOMC April 29 meeting noted that “in addition to weighing heavily on economic activity in the near term, the economic effects of the pandemic created an extraordinary amount of uncertainty and considerable risks to economic activity in the medium term”.

“A number” of members saw a “substantial likelihood of additional waves of outbreak” which would lead to a “protracted period of severely reduced economic activity.” “With another round of strict restrictions on social interactions and business operations, was assumed to begin around year-end, inducing a decrease in real GDP, a jump in the unemployment rate, and renewed downward pressure on inflation next year,” the summary said.

The Committee would “continue to monitor the implications of incoming information for the economic outlook, including information related to public health, as well as global developments and muted inflation pressures, and would use the Committee’s tools and act as appropriate to support the economy.”

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