#Federal Reserve

.Washington D.C., DC, USA
Fedwire, a system maintained by the Federal Reserve, is the most preferred tool for American businesses to transfer huge sums of money (Photo Credit: Twitter/@federalreserve)

  • The Fedwire regained operations around 3 pm ET on Wednesday
  • Other service tools offered by the Federal Reserve had still not recovered from the technical glitch
  • Fedwire accounted for over $3 trillion of wire transfers every day in the final quarter of 2020

.Washington D.C., DC, USA
Federal Reserve Chairman Jerome Powell.(Photo Credit: AFP)

  • The central bank chief remained steadfastly noncommittal about the rescue package
  • He insisted that the Fed will keep rates at the current level near zero until the economy reaches "maximum employment"
  • Powell has said the true level of joblessness is closer to 10% than the official rate of 6.3% in January

.Washington D.C., DC, USA
The Federal Reserve of US has previously ensured that it will keep the borrowing rates stable until the economy recovers (Photo Credit: Representational Image/Pixabay)

  • Nasdaq took the most substantial hit and dropped 2.5% while S&P 500 dropped 0.1%
  • Dow Jones Industrial Average managed to pull back and ended with a gain of 0.1%
  • Rising lending rates hit tech companies more since they rely more heavily on financing

.Washington D.C., DC, USA
The Federal Reserve chief warned that the true jobless rate is about 10%, far above the official 6.3% rate in January. (Photo Credit: AFP Photo)

  • It could take years to recover from the damage the pandemic had on the labour market, Powell said
  • The Fed chief declined to share specifics of Joe Biden's plan, pledging to "stick to our knitting"
  • About 10 million fewer people were employed last month compared to the pre-pandemic period

.New York, NY, USA
Major US indices expect Dow Jones declined (Photo Credit: Representational Image/ Unsplash)

  • The blue-chip Dow index edged to a fresh record
  • S&P 500 fell by 0.1% and closed at 3,909.88
  • Nasdaq took a major hit of 0.3% and closed at 13,972.53 

.Washington D.C., DC, USA
US economy is currently struggling with its revival in the pandemic (Picture Credits: Representational Image/Unsplash)

  • Unemployment rates are likely to take longer before recovering
  • The US suffered its worst economic slowdown after World War II
  • A $4 trillion package passed by the US Congress will assist the US economy in recovering 

.Washington D.C., DC, USA
Wall street experienced an unprecedented blow after the Federal Reserve's statements (Photo Credit: Representational Image/ Pixabay)

  • The path of US economy will depend o the course of the virus, says the Central Bank
  • The interests rates will remain at an all time low for the forseeable future
  • The Dow Jones Industrial Average slipped by 1.9% 

.Washington D.C., DC, USA
The Federal Reserve is led by Jerome Powell as the chair (Photo Credit: Twitter @federalreserve)

  • The FOMC promised to keep lending rates near zero for an extended period
  • The final outcome of the meeting will be announced on Wednesday by Jerome Powell
  • The stimulus package is expected to provide relief to the people of US

.Washington D.C., DC, USA
The Senate on Monday voted overwhelmingly to confirm Janet Yellen's nomination(Photo: Twitter/@JanetYellen)

  • Janet Yellen was sworn in Tuesday as Treasury secretary by the nation's first female Vice President Kamala Harris
  • She became the first female head of the Federal Reserve in 2014
  • Yellen will take the lead in the effort to win Congressional support for Biden's proposed $1.9 trillion economic rescue plan

.Washington D.C., DC, USA
Employment rate in US grew at a slow pace in some districts (Photo Credits: Representational Image/Unsplash)

  • Economic conditions in sectors of housing sales and small businesses improved in mid 2020
  • US experienced an economic collapse of 31.4% in second quarter of 2020
  • Relapse of COVID-19 cases potrays a mixed image of the economic situation in US