Fed's Rosengren: We expect the unemployment rate to rise dramatically

Eren Sengezer FXStreet

"Today, we're witnessing the pandemic's stark effects on public health," Boston Federal Reserve Bank President Eric Rosengren said in his prepared remarks on Wednesday, per Reuters. "Meanwhile, the necessary response – social distancing – has stilled our strong economy, disrupting countless lives and livelihoods."

"We must continue to adapt as the crisis proceeds," Rosengren added. "Unfortunately, we expect the unemployment rate to rise dramatically."

Risk aversion

As of writing, the Dow Jones Industrial Average and the S&P 600 were both down around 3.5% on the day while the Nasdaq Composite was erasing 3.3%.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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