The head of the Federal Reserve Bank of St. Louis, James Ballard, said that the situation will not change in the next six months as those who were temporarily laid off will return to work. He claims that the unemployment rate will fall to 4.5%.
However, the economic recovery will take a lot of time and will face constraints, warned Lael Brainard, the governor of the Federal Reserve. Mrs. Brainard believes that it may be necessary to soften the monetary policy.
Meanwhile, the president of the Federal Reserve Bank of Philadelphia, Patrick Harker, said that the whole world is in a grave crisis that will last for a long time.
The Bank of Japan claims that the economy will begin to recover in the second half of 2020, but the pace of recovery will be slow due to the continued impact of the COVID-19 pandemic in the world.
In the UK, inflation grew by 0.5%.
EUR/USD rose by 0.11% to trade at $1.1412.
The US dollar fell by 0.06% to 107.18 yen, while the euro rose by 0.05% to 122.31 against the yen.
The pound sterling advanced by 0.33% to 1.2594 against the US dollar. Besides, the British pound grew by 0.25% to 1.1038 against the euro.
The US dollar index that measure the value of the US dollar against a basket of six world currencies dropped by 0.07%.
