News

Economy & Business

Fed Chairman Says U.S. ‘May Well Be in a Recession’ after Coronavirus Leads to Record One-Week Unemployment Numbers

Federal Reserve Chairman Jerome Powell arrives to speak to reporters after the Federal Reserve cut interest rates in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus, in Washington, March 3, 2020. (Kevin Lamarque/Reuters)

Federal Reserve Chairman Jerome Powell admitted Thursday that the U.S. economy may be slipping into a recession but said the long term outlook will depend on how quickly the coronavirus pandemic is contained.

“We may well be in a recession,” Powell said on NBC. “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 are starting from a very strong position.”

Powell also assured that the Fed will not be depleted of resources due to its now near-zero interest rates and expansive bond-buying program.

“When it comes to lending, we are not going to run out of ammunition. That just doesn’t happen” the central bank chief said. “We still have policy room in other dimensions to support the economy.”

The Fed introduced a wave of unprecedented stimulus measures this month, including slashing interest rates, pledging to buy unlimited bonds, and credit programs for companies as businesses struggle to remain afloat while the coronavirus outbreak slashes economic activity around the country.

Powell added that the Fed is focusing on aiding “places where credit is not being offered where it should be offered.”

“We can step in and make that happen. That’s a very positive thing and appropriate thing in this highly unusual situation we’re in,” the chairman said.

Unemployment claims spiked to a record high of 3.28 million, surpassing the peak of the Great Recession peak of 665,000 claims in March, 2009 as well as the record high of 695,000 in October, 1982.

Powell was coy on whether he agrees with President Trump’s hope that the economy could roar back to life by Easter, April 12.

“We’re not experts in pandemics over here. We don’t get to make that decision. I would say that we would tend to listen to the experts,” Powell said.

The U.S. currently has more than 68,500 cases of coronavirus and by Thursday close to 1,000 had died after contracting the respiratory illness, which originated in China. New York reported 100 more deaths on Thursday for a total of 385 fatalities in the state.

Send a tip to the news team at NR.

Most Popular

Immigration

The Party’s Over — No More Guest(worker)s

Last month's Presidential Proclamation temporarily suspending a tiny sliver of permanent immigration in response to Great Depression 2.0 also called for a review of the alphabet soup of foreign-worker programs. The relevant cabinet departments were instructed to offer recommendations "to stimulate the United ... Read More
Immigration

The Party’s Over — No More Guest(worker)s

Last month's Presidential Proclamation temporarily suspending a tiny sliver of permanent immigration in response to Great Depression 2.0 also called for a review of the alphabet soup of foreign-worker programs. The relevant cabinet departments were instructed to offer recommendations "to stimulate the United ... Read More
U.S.

Unsustainable America

Americans are having fewer babies than ever, or at least than since the government began tracking the general fertility rate in 1909. The total fertility rate ticked down to 1.7 in 2019, meaning that the average number of babies an American woman would have over her lifetime is well below replacement ... Read More
U.S.

Unsustainable America

Americans are having fewer babies than ever, or at least than since the government began tracking the general fertility rate in 1909. The total fertility rate ticked down to 1.7 in 2019, meaning that the average number of babies an American woman would have over her lifetime is well below replacement ... Read More

The Makings of Modern Madness

The paradigm of mind–brain dualism, like the story of syphilis, is by no means virgin territory. However, Allan Ropper and Brian Burrell’s How The Brain Lost Its Mind: Sex, Hysteria, and the Riddle of Mental Illness puts both the legacy of dualism and the story of syphilis under the microscope, and offers a ... Read More

The Makings of Modern Madness

The paradigm of mind–brain dualism, like the story of syphilis, is by no means virgin territory. However, Allan Ropper and Brian Burrell’s How The Brain Lost Its Mind: Sex, Hysteria, and the Riddle of Mental Illness puts both the legacy of dualism and the story of syphilis under the microscope, and offers a ... Read More
World

‘Professor Lockdown’ Modeler Resigns in Disgrace

Neil Ferguson is the British academic who created the infamous Imperial College model that warned Boris Johnson that, without an immediate lockdown, the coronavirus would cause 500,000 deaths and swamp the National Health Service. Johnson’s government promptly abandoned its Sweden-like “social ... Read More
World

‘Professor Lockdown’ Modeler Resigns in Disgrace

Neil Ferguson is the British academic who created the infamous Imperial College model that warned Boris Johnson that, without an immediate lockdown, the coronavirus would cause 500,000 deaths and swamp the National Health Service. Johnson’s government promptly abandoned its Sweden-like “social ... Read More

John Wayne: The Hero We Need Now

America fits into John Wayne's filmography, and this does not make America small. It makes John Wayne huge. The coronavirus has brought us back to the Wild West. Lonely lives, deserted streets, looks of distrust, and whiskey for throat disinfection; the scientific community has not made an official statement as ... Read More

John Wayne: The Hero We Need Now

America fits into John Wayne's filmography, and this does not make America small. It makes John Wayne huge. The coronavirus has brought us back to the Wild West. Lonely lives, deserted streets, looks of distrust, and whiskey for throat disinfection; the scientific community has not made an official statement as ... Read More