Fed's just-released semiannual report to........>

FED: Fed's just-released semiannual report to Congress, ahead of Powell's

testimony in Congress next week, mostly retread remarks from officials in the

recent past. A couple notes:

* Expects GDP to "contract at a rapid pace" in Q2 and path ahead to be

"extraordinarily uncertain" depending on path of virus 

* Warns some small businesses and highly leveraged firms might have to shut down

permanently or declare bankruptcy 

* Notes improved market functioning but "bid-ask spreads for longer-maturity and

off-the-run Treasury securities remain wider than in mid-February. Market depth

for on-the-run securities remains low, particularly for longer-maturity

securities. MBS market functioning and liquidity have largely returned to

pre-February norms, though strains remain in some less liquid parts of the

market."

* Repeats that the framework review will be completed later this year