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Powell warns that the economic damage could become permanent as Congress debates provide more support.

Jerome H. Powell, President of the Federal Reserve, issued a stern warning on Wednesday that the United States was facing an “unprecedented modern” economic coup, a coup that could cause lasting economic damage if Congress failed to deliver not enough political support to prevent a wave of bankruptcies and prolonged unemployment.

Mr. Powell’s brutal assessment was the clearest signal to date that the trillion dollars of support that policymakers had already invested in the economy might not be enough to prevent lasting damage from a pandemic that has closed businesses and put more than 20 million people out of work. .

It was also a replica for lawmakers and the Trump administration, whose discussions on additional bailouts have failed as Democrats unveil a wishlist and Republicans shun federal spending, instead betting that reopening the economy will accelerate growth quickly and considerably.

“The recovery could take a while to gain momentum,” said Mr. Powell at a virtual event at the Peterson Institute for International Economics, where he welcomed the first response packages from Congress and suggested that an uncertain prospect might demand more. “Additional budget support could be costly, but worth it if it avoids long-term economic damage and leaves us with a stronger recovery. “

Powell’s comments troubled investors, and the S&P 500 fell about 2% in the early Wednesday afternoon.

Members of Congress remain divided along partisan lines on how aggressively to pursue additional relief spending, with Democrats proposing large-scale new programs and Republicans voicing concerns about the mounting federal budget deficit. President Trump’s economic advisers have said they are waiting for the moment to find out if another tax package is needed, looking to see how much the economy is rebounding as states lift restrictions on business activities.

Powell and his colleagues at the central bank are stepping into their roles as economic experts and informal advisers to inspire budget makers to act. They say the recovery remains very uncertain, and if the political response turns out to be inadequate, the consequences could be lasting and painful.

“While the economic response has been both timely and important enough, it may not be the last chapter, as the path ahead is both very uncertain and subject to significant downside risks Said Powell on Wednesday. “Since the answers are currently unknown, politicians will need to be ready to respond to a range of possible outcomes.”

Powell said the burden often falls on the most disadvantaged, saying a Fed survey scheduled for Thursday would show that nearly 40% of those working in February and living in households earning less than $ 40,000 a year. years had lost their jobs in March.

He warned of the significant drawbacks of the extinction of the current recession, ranging from “lasting damage” to the economy’s productive capacity to “avoidable” household and business failures that weigh on growth for years to come. He also warned that long periods of unemployment could erode workers’ skills and leave families struggling with huge debts.

“We must do what we can to avoid these results, and this may require additional political action,” said Powell.

The Trump administration is reviewing an order to extend border restrictions on viruses indefinitely.

The Trump administration is set to extend border restrictions on viruses indefinitely, using government wide public health officials to severely limit immigration across its land borders until officials decide it doesn’t there is more danger of infection for Americans, reports Michael D. Shear.

Doug Mills, photographer for the New York Times, capture Vice President Mike Pence arriving Wednesday at the White House with a protective mask. The White House on Monday ordered all west wing workers to put on masks at work, unless they were at their desks.

The two changes, which are expected to be approved on Friday, would be the first for a tradition-minded body reluctant to change its rules, even with the advent of new digital technologies. After weeks of debate, they reflect leaders’ conclusion that there may be no other way for Congress to function fully in the months to come as Covid-19 continues to spread throughout the capital and the country.

“There is no substitute for a personal meeting – meet in a committee room or upstairs and members interface with each other,” said representative Steny H. Hoyer , Maryland Democrat and majority leader, in an interview.

“However, if this cannot be done, this rule provides that Congress will nevertheless be able to work, will nevertheless be able to answer the question of the day. “

Washington, D.C. Mayor Muriel E. Bowser said Wednesday the city is extending his stay at home order until June 8.

Beyond what could be temporary changes, consumer habits seem to be changing in a way that could last well beyond the pandemic and determine who will become the most important online players, writes Nathaniel Popper, who covers finance and technology.

« Ce virus peut devenir juste un autre virus endémique dans nos communautés, et ce virus peut ne jamais disparaître », a déclaré Mike Ryan, responsable du programme d’urgence sanitaire de l’organisation, lors d’une conférence de presse. « VIH. n’a pas disparu, mais nous nous sommes entendus avec le virus et nous avons trouvé les thérapies et nous avons trouvé les méthodes de prévention, et les gens ne se sentent pas aussi effrayés qu’avant. “

« Il n’y a pas de promesses dans ce domaine et il n’y a pas de dates », a-t-il dit, renforçant les attentes selon lesquelles l’invention d’un vaccin mettra un terme rapide et complet à ce qui est devenu une calamité économique et sanitaire mondiale. Un bon vaccin pourrait être développé, mais on ne sait pas quand, a-t-il ajouté, appelant cela « un coup de lune ».

Si les personnes infectées deviennent immunisées ou résistantes, alors quand suffisamment de personnes ont eu le virus, il en restera moins qui pourront l’attraper ou le propager, ce qui rendra les épidémies plus gérables. Mais personne ne sait combien de temps cela prendra.

« Le nombre actuel de personnes infectées dans notre population est en fait relativement faible », a déclaré le Dr Ryan.

Il a également exprimé son cynisme quant aux perspectives d’éradication, même avec un vaccin, en déclarant: « nous avons des vaccins parfaitement efficaces sur cette planète que nous n’avons pas utilisés efficacement pour des maladies que nous aurions pu éradiquer ». Il a cité le récentes flambées de rougeole dans le monde.


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