FXStreet reports that analysts at Nordea note that next week’s FOMC meeting will be centred on whether the liquidity and credit facilities implemented in response to the corona virus have been suitable and whether more is on its way.

“The Fed will undoubtedly stress that the negative economic consequences of the coronavirus will be severe. We are expecting an unemployment rate around 17-20% in April and, along with former Fed Chairs Bernanke and Yellen, do not expect a V-shaped recovery, but rather a U-shaped one.”

“We are particular interested in how the Fed will address the critique of buying junk bonds and thereby potentially creating long-term moral hazard issues, partly whether we get some more firm evaluation/guidelines on the asset purchases.”

“We find likely that they will soon implement yield curve control. A formal implementation of this already next week is perhaps too soon, but we would be surprised if it was not at least discussed at the meeting.”