Comments in the Fed's monetary policy report to Congress about the Fed Listens events

  • Weekly employment data from ADP indicate that rehiring has continued and that payroll employment will move up again in June
  • Strains on household and business balance sheets from the economic and financial shocks since march will likely create persistent fragility
  • Fragilities expected to be significant in the near term
  • Lending standards for both households and businesses have become less accommodative, borrowing conditions are tight
  • In Q2, GDP appears to be plummeting at a breathtaking pace
  • Risks abroad are skewed to the downside
  • Economic damage of the recession may be quite persistent
  • Collapse in demand may ultimately bankrupt many businesses
  • Full report

It's interesting that the Fed is looking at higher-frequency data.