1851

On Wednesday, the U.S. Federal Reserve said it would keep interest rates near zero until the economy begins to recover from the disastrous effects of the coronavirus pandemic, but offered no estimated time frame.&nbsp;Since mid-March, the Fed’s key borrowing rate —&nbsp;the benchmark for interest rates throughout the economy —&nbsp;has remained between zero and 0.25 percent. The historically low rate was seen as a drastic but necessary early measure to stave off the worst effects of the coronavirus pandemic on the economy. That the rate will remain near zero for the foreseeable future demonstrates just how dire the Fed’s outlook remains.<a href="https://www.bloomberg.com/news/articles/2020-04-29/fed-sees-medium-term-pandemic-risks-keeps-zero-rate-pledge?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fed-to-keep-interest-rates-near-zero-until-economy-rebounds-2712996" target="_blank" rel="nofollow">In a video press conference</a>, Federal Reserve Chairman Jerome Powell warned the economy will continue to decline and asked lawmakers to deliver additional stimulus packages.“Let me just say we are going to not be in any hurry to withdraw these measures or to lift off,” Powell said. “We are going to wait until we are quite confident that the economy is well on the road to recovery.”In the first three months of 2020, <a href="https://www.bankrate.com/banking/federal-reserve/fomc-meeting-recap-april-2020/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fed-to-keep-interest-rates-near-zero-until-economy-rebounds-2712996" target="_blank" rel="nofollow">the U.S. economy contracted by 4.8 percent</a>, the largest drop in gross domestic product since 2008, and Powell warns the worst is yet to come.“Economic activity will likely drop at an unprecedented rate in the second quarter,” Powell said. “It may well be the case that the economy will need more support from all of us, if the recovery is to be a robust one.”In the past six weeks, <a href="https://www.nytimes.com/2020/04/30/us/coronavirus-tracker-live.html?action=click&amp%3Bmodule=Spotlight&amp%3Bpgtype=Homepage&utm_source=1851franchise.com&utm_medium=article&utm_campaign=fed-to-keep-interest-rates-near-zero-until-economy-rebounds-2712996#link-4d74b7e5" target="_blank" rel="nofollow">more than 30 million Americans have filed for unemployment</a>. Meanwhile, the S&amp;P 500 is up 30 percent since March 23 and is having <a href="https://www.nytimes.com/2020/04/29/business/stock-markets.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=fed-to-keep-interest-rates-near-zero-until-economy-rebounds-2712996" target="_blank" rel="nofollow">its best month since 1987</a>.

Fed to Keep Interest Rates Near Zero Until Economy Rebounds

1851 Franchise

Federal Reserve Chairman Jerome Powell cautioned lawmakers to expect a weak recovery, even after the pandemic is contained.

fed-to-keep-interest-rates-near-zero-until-economy-rebounds

Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

childrens-lighthouse-ramps-up-growth-in-first-half-of-2025-with-strategic-expansions-franchise-signings-and-new-headquarters

Right at Home

Right at Home® Named a 2025 Top Franchise Brand for Multi-Unit Owners by Entrepreneur Magazine

right-at-home-named-a-2025-top-franchise-brand-for-multi-unit-owners-by-entrepreneur-magazine

Dog Training Elite

Dog Training Elite -Tips-to-Ease-Dog Anxiety-for-4th of July- July-2025

Dog Training Elite Shares Tips To Ease Dog Anxiety for 4th of July

tips-to-ease-dog-anxiety-fireworks-4th-of-july

Melting Pot

Photo of interior of Melting Pot restaurant

Lexington Herald Leader: This Restaurant Chain Eyes a Return to Lexington After 10 Years

melting-pot-return-to-lexington

Keke's Breakfast Cafe

Keke's Breakfast Cafe - John and Kimberly Ehrhard - 1851 Franchise

Empowering Leadership, One Pancake at a Time: How John and Kimberly Ehrhard Are Building a Franchise Legacy with Keke’s Breakfast Cafe

john-kimberly-ehrhard-kekes-franchise

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

Fed to Keep Interest Rates Near Zero Until Economy Rebounds

MORE STORIES LIKE THIS