The Federal Reserve announced this past week that it plans to continue its monetary policy until the economic recovery is complete. The economic recovery has been faster than expected but the economic future looks uncertain, Fed Chairman Jerome Powell said.
Economic recovery rebounded with real GDP rising at an annual rate of 33% in Q3. The real GDP will fall by 2.4% in 2020. This is compared to an anticipated decline of 3.7% announced in September.
“The housing sector has fully recovered from the downturn, supported in part by low mortgage interest rates,” Powell said. “The recovery has progressed more quickly than generally expected.”
Unemployment fell to 6.7% by the end of the year compared to the 7.9% that was projected in September. Employment recovery is picking up the pa…