Powell: The epidemic poses an unprecedented risk to the US economy

Powell: The epidemic poses an unprecedented risk to the US economy
May 14, 2020 No Comments News customjune.com

Fed Chairman Powell pointed out that the new coronary pneumonia epidemic poses an unprecedented downside risk to the US economy. When attending an online event, Powell said that in the face of the impact of the epidemic on the US economy, if fiscal and monetary policy makers do not take measures to respond, the US economic and commercial activities will be affected in the long run. The cost of fiscal measures may be high, but if the measures help protect the economy from long-term damage and create an environment that will allow the economy to recover strongly, it is also worthwhile.

FILE – In this March 3, 2020 file photo, Federal Reserve Chair Jerome Powell pauses during a news conference in Washington. Powell provided a bleak outlook for the U.S. economy in remarks Wednesday, May 13, and urged Congress and the White House to act further to offset the damage from the viral outbreak. (AP Photo/Jacquelyn Martin, File)

Powell is also worried about the US job market. In other words, the Federal Reserve will publish a survey report showing that American households with an annual income of less than $ 40,000. Nearly 40% of families were unemployed in March.

US President Trump reiterated that he still wants the US to implement negative interest rates. Trump also commented on Fed Chairman Powell, arguing that the other party’s performance has improved. Powell pointed out earlier that negative interest rates are currently not an option considered by the Fed, but he has not completely ruled out the possibility of being a potential tool in the future.

In addition, the United Nations predicts that due to the impact of new pneumonia, the global economy will contract by 3.2% this year, the largest since the Great Depression of the 1930s.

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