The head of the fed Jerome Powell said that the us economy may experience a “prolonged exposure” from the negative impact of the pandemic coronavirus. In his words, “the scale and pace of economic downturn is unprecedented since the Second world war.” He said this in his today’s speech at the Peterson Institute for international Economics. Mr. Powell noted that to date the U.S. government has allocated $2.9 trillion to support the economy, credit, labor market, small and medium business. This is 14% of annual US GDP. But despite the fact that “substantial assistance to the economy was provided on time, it may not be the final Chapter, given that there is still a lot of uncertainties and high risks of a slowdown”.According to the head of the fed, “the long recession and weak economic recovery may adversely affect the investment and business sentiment, limiting the recovery of the labor market, capital growth and the pace of technological development. Therefore, we must do everything to avoid such a development, perhaps with additional measures at our disposal”. Jerome Powell said that “the fed continues to use all the tools, until the crisis passes, but the recovery will not be sustainable. It is useful to recall that the fed has not only authority over the expenditure of funds and lending. Lending from the fed could help to overcome temporary shortages of liquidity. In addition, these loans will help many borrowers survive the current crisis.” The stock market reacted negatively to the words of the head of the fed about the possibility of a prolonged slowdown of the us economy — the Dow Jones immediately after the opening of trading lost about 200 points (0,9%), the S&P 500 index fell 0.5%.US leads in the number of cases of coronavirus. The country registered more than 1.3 million cases COVID-19, died more than 82 thousand people. In the world of recorded 4.3 million cases of coronavirus, has died 292 thousand people, has recovered 1.5 million About how the U.S. Congress and the European Commission adopted a major package of financial assistance to the economy, read in the material “Kommersant” “, the Virus takes in dollars and in euros”.Eugene Tail
