Fed: the market is waiting for a collapse again in the absence of effective response to the pandemic

Most experts predict moderate recovery economy - both in the United States and in other countries, but the uncertainty of its prospects are now especially high. Consequences of proliferation coronavirus weakened the protection of the financial system from future shocks, including from repeated outbreaks of the pandemic. Such an assessment of the situation is provided in a recent report from the Federal Reserve, published on Monday. The spring quarantine has dealt a tangible blow to businesses and households. If the financial situation of the hardest hit continues to deteriorate, this can lead to negative consequences for the financial system as a whole. At the same time, monetary and fiscal tools to support the economy in cases when the crisis is caused by medical factors can only partially help, says document. If the second wave of coronavirus drags on, additional damage to the United States economy could disrupt the fragile recovery, the Fed warns.