Federal Reserve Chairman Jerome Powell on Wednesday reiterated that the economic recovery depends on how the country is handling the coronavirus pandemic.
“As we have emphasized during the pandemic, the outlook for the economy is uncertain and will largely depend on the success of its viral containment efforts,” said Powell. He said in the following press conference following his decision to keep interest rates at record lows: “Recent increases in new COVID-19 cases in both the US and abroad.
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Powell notes that all Americans can play a role in the nation’s response to the pandemic by wearing a mask and following the out-of-society guidelines set by public health officials. out to make sure the economy fully recovers.
“Following the advice of public health experts to keep the right social distance and wearing a mask in public will help the economy get strong again,” said Powell. in a wide range of activities. “
His warning came as the country was struggling with a new wave of coronavirus infections.
The latest COVID-19 Tracking Project estimates have recorded more than 100,000 new coronavirus infections in just one day, with more than 52,000 Americans currently hospitalized. Overall, the United States has passed 9.5 million confirmed coronavirus infections, according to the latest update from Johns Hopkins University.
“It looks like people who might have started to engage in activities they never had – fly, stay in hotels, go to restaurants, go to bars and the like – they could withdraw in a situation. Unexpecteds happen everywhere in your city, your state, your community, ”added Powell.
While he believes that “could affect economic performance,” he noted that the most recent wave of coronavirus infections over the summer, mainly in the southern part of the country, had an impact. Restrictions to the economy in general.
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The latest Department of Labor figures show that a total of about 7.28 million Americans are still continuing to receive unemployment benefits, with about 751,000 workers seeking aid in the week ending October 31, about 4 times the pre-crisis level. However, it is far below the peak of nearly 7 million in late March, when the states first implemented door-lock measures to curb the spread of COVID-19.
Powell’s comments also come ahead of the October jobs report, which is expected to show the US economy added 600,000 jobs last month, down slightly from September’s 661,000 gain. area predicts the unemployment rate will drop to 7.6% from 7.9%. As reported in September, there are still about 10.7 million Americans unemployed compared to February before the pandemic struck.
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