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“Forward-looking indicators of business spending, such as new orders of nondefense capital goods, have plunged recently,” the US Federal Reserve noted in its latest Monetary Policy Report on Friday.

Additional takeaways

“Employment for lower-wage earners 35% lower than in February, compared with 5% to 15% lower for higher-wage earners.”

“Path ahead for the economy is extraordinarily uncertain.”

“Some small businesses and highly leveraged firms might have to shut down permanently or declare bankruptcy.”

“There is uncertainty about future labor demand and productivity.”

“Strains remain in some less liquid parts of treasury markets.”

“Risks abroad are skewed to the downside.”

“Future progression of the pandemic remains highly uncertain, with the resurgence of the outbreak a substantial risk.”

“The economic damage of the recession may be quite persistent.”

“Collapse in demand may ultimately bankrupt many businesses.”

“Disruptions to global trade may also result in a costly reconfiguration of global supply chains.”

“Wide variety of data reveal an alarming picture of small business health during the COVID-19 crisis.”

“Persistently weak consumer and firm demand may push medium- and longer-term inflation expectations well below central bank targets.”

“Nature of economic recovery following COVID-19 crisis will depend in part on the survival of small businesses.”

Market reaction

These remarks were largely ignored by the market participants. As of writing, the US Dollar Index is up 0.42% on the day at 97.22.

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