Private economists agree with the dour economic outlook recently presented by the US Federal Reserve and the central bank’s ultra accommodative monetary policy stance, according to a Reuters poll.
Over 70% of economists, 45 of 60, said the US Federal Reserve’s first pandemic era economic outlook and policy stance is just “about right”.
The poll also showed that a majority of economists expect the US economy to contract by 34.8% in the second quarter of this year and by 5.8% in 2020. The previous poll had forecasted a second-quarter contraction of 35% and a full-year growth rate of -5.7%.
The Federal Reserve has injected an unprecedented amounts of stimulus into the system over the past three months to help the economy and credit markets abosrb shocks arising from the coronavirus outbreak and recession fears. The central bank said earlier this month that the economy may take years to return to the pre-coronavirus levels, dashing hopes for a V-shaped recovery.
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