“We would expect to see a backlash from the Federal Reserve, at least in terms of confidence,” said Paul Ashworth, an economist at Research Advisory Capital Economics, but noted that monetary policy works in the economy with a gap of six to nine months, and “it’s one-third of your workforce. Doesn’t work with supply-side effects “”
The more critical response may come from the Congress and the Trump administration, which have done so little to record a financial report.
One of the most important things the government can do to lift the economy is to stop the outbreak of Americans, to keep working and spending. If this fails, however, financial responses are an option; Hong Kong and China, both hit hard, have rolled out packages to help boost enthusiasm. While tax and expenditure policies may encourage demand more than stabilize supply, they can act faster than monetary policy.
California House Speaker Nancy Pelosi and Democratic Leader New York Senator Chuck Schumer on Thursday morning called on Congress and Mr. Trump to “smarter, strategic, and fashion-driven in a response to a spending bill aimed at spreading deadly coronavirus in Syria.” include o You should
This national program will introduce targeted relief but not an attempt to dramatically increase customer demand in the economy.
But such a plan does not seem impossible – Democratic and Republican leaders in Congress have not begun any discussions between the White House or the House and Senate on any possible package of tax cuts and spending increases that should stimulate the economy in the wake of the virus. Senate top aides on Thursday said that Mr Trump’s aides were soon to have this national conversation, with a focus on the continuation of low unemployment and continued economic growth.
On Thursday, Senate Finance Committee spokesman Michael Zona and its IO chairman Charles E. Grassley said, “Coronavirus has not had a wide-ranging impact on the U.S. economy at the moment, and its impact is limited.” Determinable but ready to consider appropriate tax relief response ”.