Fed's Semi-Annual Report

    The Fed's semi-annual report to Congress on Friday focused on current domestic unemployment and risks to the financial sector.

 

    "While financial and regulatory reforms have increased the resilience of the financial sector since 2008, vulnerabilities in the financial system, particularly those related to non-bank financial sector liquidity and maturity transitions, amplify the impact of the pandemic," the Fed said. weaknesses in the financial sector are expected to become apparent in the near term."

    The Federal Reserve's policy committee voted this week to keep its benchmark interest rate near zero and not raise it until 2022. The unemployment rate is now expected at 9.3% to end of the year. Inflation will slowly decline over the next two years and will remain below the Fed's 2% target until 2022 due to weak demand.

Start this year, the Fed’s challenges is keep growing.