Markets fall as investors fear long-term economic harm from Covid-19 Business

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Hello and welcome to our continued coverage of the global economy, financial markets, the eurozone and business.

Concerns about the human and economic cost of Covid-19 continue to weigh on the markets today.

Jerome Powell, President of the United States Federal Reserve Yesterday shook investors warning that the United States risked a “prolonged recession” and an “extended period” of weak economic growth.

Powell’s prognosis is a blow to all lingering hope for a V-shaped recovery – the road to return from this pandemic will be rather bumpy.

The Fed chairman also warned that governments may have to spend even more to protect their economies – in addition to the huge stimulus packages already planned.

Mark haefele, CIO at UBS Global Wealth Management, fears that this call will not be heard.

Powell called for further fiscal stimulus to help offset the economic fallout from the pandemic, but ruled out pushing US interest rates into negative territory. Given persistent partisan tensions in Washington, the additional fiscal stimulus measures requested by Powell seem unlikely to materialize immediately. “

His warning came hours after learning that Britain had recorded its largest monthly GDP decline ever recorded, as British GDP fell by almost 6% in March.

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