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BUSINESS Tuesday 15 december 2020
Fed to weigh further options for aiding U.S. economy in peril

By CHRISTOPHER RUGABER they can for the economy
AP Economics Writer through ultra-low rates.
WASHINGTON (AP) — The At their meeting in Novem-
Federal Reserve's policy- ber, Fed policymakers dis-
makers face an unusual cussed the idea of buying
conundrum as they meet more longer-term bonds,
this week: A short-term among other options, ac-
economic outlook that cording to minutes pub-
is worsening even while lished three weeks later.
the longer-term picture is Doing so could further re-
brightening thanks to the duce the yield on 10-year
emergence of coronavirus Treasurys, which influence
vaccines. other borrowing costs, such
When its meeting con- as mortgage and credit
cludes Wednesday, the card rates.
Fed could announce steps By contrast, the purchase
to try to offset the pan- of, say, two-year Trea-
demic's increasing drag on surys has less effect on the
growth. Or it could choose most common loan rates,
to mostly watch and wait, though it can help the Trea-
for now. sury market function more
The central bank's policy smoothly, which was the
meeting coincides with a re- original goal of the Fed's
cord-shattering resurgence Federal Reserve Chairman Jerome Powell testifies before a House Financial Services Committee bond-buying program this
of the coronavirus, which hearing on Capitol Hill in Washington, Wednesday, Dec. 2, 2020. year.
has caused an increase Associated Press While Fed officials worry
in business restrictions and that the pandemic will se-
made more Americans re- term securities, to hold tor is that even as nego- cal stimulus," Tim Duy, an verely harm the economy
luctant to shop, travel and down longer-term interest tiations continue, Congress economics professor at the this winter, not all are sold
dine out. Some analysts say rates. The Fed has already has yet to agree on anoth- University of Oregon and on more stimulus.
the economy could shrink cut its benchmark short- er round of urgently need- author of the "Fed Watch" "We expect very strong
in early 2021 before recov- term rate to a record low ed financial aid for millions blog, referring to potential growth next year," Rob-
ering as vaccines combat near zero. of unemployed Americans, rescue aid from Congress. ert Kaplan, president of
the virus. Yet the Fed's tools take time thousands of struggling Recent data is pointing to the Federal Reserve Bank
Economists are divided on to support the economy, businesses and cash-short an economy that is getting of Dallas, told CNBC this
whether the Fed will an- which adds a layer of com- states and cities. worse. More Americans are month. "But I think the next
nounce any new actions plexity given the short-term Many Fed policymakers, in- seeking unemployment three to six months are go-
this week. One option the gloom and longer-term op- cluding Chair Jerome Pow- benefits, a sign that layoffs ing to be challenging. And
policymakers could take timism. ell, have repeatedly urged are likely rising, and overall it appears to us that growth
would be to announce a "Near-term downside risk Congress to provide more hiring slowed in November is decelerating, and if this
shift in the Fed's bond pur- may not be enough of a support. Most proposals on to its slowest pace since resurgence keeps heading
chases. The Fed has been reason" to provide more Capitol Hill include extend- April. Credit and debit card the wrong way, which it is,
buying $80 billion in Trea- stimulus "if the outlook for ing unemployment benefit data suggests that holiday that slowing and decelera-
sury bonds and $40 billion the economy in three to programs that are sched- spending is weaker than it tion could get worse."
in mortgage bonds each six months remains strong," uled to expire in about two was last year. But Kaplan, a voting mem-
month in an effort to keep Lewis Alexander, U.S. chief weeks. At that point, rough- Still, Fed officials may not ber of the Fed's policy-
borrowing rates down. economist at Nomura Se- ly 9 million jobless people yet be ready to take new making committee, said,
The idea of a shift would be curities, said in a research will lose all their unemploy- steps, perhaps believing "I would not want" to alter
to buy more longer-term note. ment aid, state or federal. they have already pro- the bond-buying program
bonds and fewer shorter- Another complicating fac- "They're all looking to fis- vided nearly all the help "at this point."q

Gmail, YouTube down briefly as Google suffers brief outage

NEW YORK (AP) — Google vented users accessing vast majority of affected
users in the U.S., Europe, In- other platforms through users," said Google's par-
dia and other parts of the Google, including mobile ent company, Alphabet, at
world were briefly unable video games. 7:52 a.m.. "We will continue
to access their Gmail ac- The disruption was an early to work towards restoring
counts, watch YouTube jolt on the East Coast for service for the remaining
videos or get to their online parents who were waking affected users."
documents during an out- children up for school Mon- Downdetector, which
age Monday. day. Millions of students are tracks website outages,
Tens of thousands of com- relying on Google for online reported the problem af-
plaints popped up around instruction during the pan- fected users across the
7 a.m. Eastern along the demic, including platforms world, but appeared es-
East Coast of the U.S. The like Google Docs. pecially widespread in the
vast majority of those peo- The problem appeared to northeastern U.S., Britain
ple, about 90%, could not cleared up just before 8 and other parts of Europe.
log in, according to the site a.m. Japan, Malaysia and In- In this Nov. 18, 2019, file photo, the logo of Google is displayed
Downdetector. "The problem with Gmail dia also looked to be more on a carpet at the entrance hall of Google France in Paris.
Associated Press
The inability to sign in pre- should be resolved for the affected.q