【Freddie Mac】Quarterly Forecast: The Economy is Recovering from a Deep Contraction and Housing is Rebounding, but the Outlook Remains Highly Uncertain

Interest rates fell to all-time lows in April and May and remain very low. Recent data has shown the devastating impact of COVID-19 on the labor market, consumer spending, and housing. The Federal Reserve made two emergency rate cuts to a range of 0 to 0.25%, citing the disruptions and economic damage caused by COVID-19.

The Fed is urging bold action going forward, warning that the economic impact from COVID-19 is “without modern precedent.” In April, the unemployment rate spiked to 14.7%, but it declined to 13.3% in May. The improvement was driven by a higher than expected rebound in employment by 2.5 million. While the rebound in employment is undoubtedly good news, employment remains 20 million below February numbers and will take an extended period of time to recover.

READ MORE