The president of the US Federal Reserve (Fed), Jerome Powell, declared this Thursday during an interview with NBC News that the economy of his country «could be in recession«, while the coronavirus continues to spread through the United States.
By Miami Diario Newsroom
“But I would point to the difference between this and a normal recession. There is nothing fundamentally wrong with our economy. Quite the contrary. We started from a very strong position », he highlighted.
Jerome Powell declared that the US is experiencing "a unique situation", when authorities ask citizens to close their businesses and stay home. "At some point, we will have the virus under control and confidence will return," he said.
Regarding the statements of President Donald Trump, who spoke that businesses will open for Easter, which is celebrated this year on April 12, Powell reiterated that "we are not pandemic experts" and "we cannot make this decision." “We should listen to the experts. Dr. Anthony Fauci said something like: 'the virus will set the calendar' and this sounds good to me," he said.
“The sooner we get the virus under control, people will very willingly open their businesses again and return to work,” Powell stressed.
Weekly jobless claims in the US reach 3 million
The number of jobless claims filed by Americans reached the record of more than 3 million last week, due to strict measures to contain the coronavirus pandemic, including business closures.
The US Department of Labor on Friday reported a record number of jobless claims at 3,28 million. The number breaks the all-time mark of 695.000, recorded in October 1982.
“During the week ending March 21, the increase in initial claims is due to the impacts of the virus Covid-19“said the Department. “States continued to cite service industries in general, particularly lodging and food service. Other industries heavily cited for increases included health care and social assistance, the arts, entertainment and recreation, transportation, warehousing, and manufacturing industries.”
Economists polled by Reuters had forecast claims rising to 1 million, but estimates ranged up to 4 million.
- Previously, US senators approved a $XNUMX trillion stimulus bill with the goal of boost the economy of the country amid the coronavirus outbreak. More than 68.000 people are infected in the country since the start of the outbreak, while the number of deaths already exceeds 1.000.
- Last week, Bank of America, one of the largest financial corporations in the US, "officially" declared that the economy of the North American country "has fallen into a recession." In the note, sent to its investors, signed by the economist Michelle Meyer, the entity reiterated that it is a "deep drop" in economic activities and, in this way, the US "joins the rest of the world" in the crisis unleashed by the outbreak of the coronavirus. The corporation expects the US economy to "collapse" in the 2020 second quarter and decrease by 12%. Likewise, he believes that the Gross Domestic Product (GDP) will contract by 0,8% this year.
Source: The Herald
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