China News Service, May 14th, comprehensive report, on the 13th local time, Fed Chairman Powell warned that the new crown epidemic raging caused the US economy to fall into a long-term recession, and urged Congress and the White House to take further action to prevent sustained economic damage. But he also said that the Fed does not currently consider the "negative interest rate" tool.

Figure: Federal Reserve Chairman Powell. China News Agency reporter Chen Meng Tongshe

  [Powell: U.S. economy may fall into lasting recession]

  When attending the Peterson International Economics Institute meeting, Powell said that although unprecedented fiscal and monetary policies have been adopted, the government needs to adopt more methods to keep the economy from getting out of control in the worst setback since the Great Recession.

  Powell reminded that the bankruptcy of countless small and medium-sized enterprises and the long-term unemployment of many people are still serious risks. He said, "We must try our best to avoid these results." He also said that through bailout programs such as government spending or tax cuts, although expensive, "If it helps avoid long-term economic damage and bring a stronger recovery , Definitely worth it ".

  Powell also pointed out that the economic recovery mainly depends on when the treatment plan can take shape, whether not taking social distance will bring about a new outbreak, and when consumer and business confidence will be restored. He believes that questions and answers to these questions will determine the pace of economic recovery. Given that the current answer is still unknown, policy support is needed.

  Powell said in a webcast speech: "It will take some time to return to the original state. There is a consensus, which I think is a growing consensus, that the recovery may be slower than we hope. But it will eventually come , And that may mean that we must make more efforts. "

Data Map: On May 7, local time, the Washington Potato Commission of the United States organized an event in Auburn City. Volunteers distributed bagged potatoes to the public. Due to the epidemic situation, these potatoes are facing slow sales due to clogged supply chain.

  [The Fed does not consider "negative interest rates"]

  In his speech that day, Powell also stated that the Fed does not currently consider negative interest rates. "We think we have a good toolbox and we will continue to use it." The toolbox Powell refers to includes zero interest rates, bond repurchases, and policy goals for unemployment and inflation.

  Previously, US President Trump had repeatedly pressured the Fed to adopt negative interest rates. But Fed officials have always been skeptical about the effect of negative interest rates. Powell had previously pointed out that he was worried that negative interest rates would weaken the profitability of banks and thus squeeze the credit market. "The Fed's view of negative interest rates has not changed, this is not a tool we consider," Powell emphasized.

  The report said that Powell's series of statements affected the performance of US stocks. After the opening, the Dow's decline intensified, and the intraday decline once reached 600 points, and finally closed down 516 points, the S & P 500 index fell 1.75%, and the Nasdaq index fell 1.55. %.