Coronavirus in the United States: Jerome Powell for a new economic assistance plan

President of the United States Federal Reserve Jerome Powell March 3, 2020 in Washington. ERIC BARADAT / AFP

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The United States is particularly affected by the Covid-19 epidemic with more than 82,000 deaths. The economy, too, is particularly bruised by these weeks of idle activity. According to the head of the Federal Reserve, Jerome Powell, the damage caused could be lasting and more help will probably be needed to allow the recovery.

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Guest of the Peterson Economic Institute, the head of the Fed recalls a series of measures put in place by the federal government and the central bank to stem the crisis.

To date, Congress has provided some $ 2.9 trillion in budget support to the economy. Or 14% of gross domestic product. However, more help will likely be needed to combat the impact of the coronavirus, says Jerome Powell.

"  The recovery could take a while before accelerating," he warns. Over time, liquidity or solvency issues may arise. Additional budget support could be costly, but it is worth it if it avoids long-term economic damage and allows us to have a stronger recovery. "

► Read also: Coronavirus: American SMEs have already requested $ 5.4 billion in aid

Democrats in the House of Representatives on Tuesday unveiled a $ 3 trillion plan to support US states, businesses and households to deal with the crisis. But the majority Republicans in the Senate strongly oppose it, they believe that the United States should wait for the historic measures already deployed to take effect.

► Read also: Coronavirus: Donald Trump signs the massive plan to help the American economy

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  • Coronavirus
  • United States
  • Economy
  • Finance
  • Economic crisis

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