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October 31, 2020
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We will feel the effects of a coronavirus pandemic for a very long time, says Fed head from New York – Blocksats

If someone hoped that the effects of a coronavirus pandemic would disappear relatively quickly, today he probably can’t be an optimist anymore. These will have a negative impact on the US economy long after removing restrictions taken to combat the spread of the disease – He said on Friday, Fed president from New York John Williams in an interview with CNBC.

We will feel the effects of a coronavirus pandemic for a very long time

“I don’t think the economy is recovering by the end of the year. Going back to where we want to be will take longer. “

Williams said and added that now “We have many economic problems today that are likely to persist for some time.”

He is also of the opinion that even after lifting the current restrictions that help us fight coronavirus, but destroy markets, it may take a long time before the demand for products and services returns to the state before the epidemic.

“One of the things we often hear from business contacts and community leaders is the fear that even as the pandemic expires, when restrictions are eased gradually, it may take some time before people want to go back to flying, riding trains or going to the theater or to the concert”

– explained the Fed president from New York.

Fed and coronavirus

Today, US authorities are doing a lot to help the economy. They even started the check program for Americans. An adult citizen will receive $ 1,200 from the authorities, and $ 600 will be allocated to each child.

In turn, on April 9, the US Federal Reserve announced that it would launch a loan program worth USD 2.3 trillion. This is to ensure liquidity, among others small and medium enterprises and local self-governments.

Earlier, on March 15, the Fed decided to reduce the federal funds rate to 0-0.25 percent. An asset purchase program worth USD 700 billion has also been launched. USD 500 billion will go to the government bond market, and USD 200 billion will be secured by mortgage-backed debt.

The next meeting of the Reserve is scheduled for April 28-29. It is possible that more such decisions will be made on it.

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