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| Fed’s Powell Says U.S. Must Get Virus Under Control Before Economy Restarts | Fed’s Powell Says U.S. Must Get Virus Under Control Before Economy Restarts |
| (1 day later) | |
| Jerome H. Powell, the Federal Reserve chair, said during a rare television interview on Thursday that the United States “may well” be in a recession already, but that it should get the coronavirus under control before getting back to work. | Jerome H. Powell, the Federal Reserve chair, said during a rare television interview on Thursday that the United States “may well” be in a recession already, but that it should get the coronavirus under control before getting back to work. |
| “The first order of business will be to get the spread of the virus under control, and then to resume economic activity,” Mr. Powell said on NBC’s “Today.” “The virus is going to dictate the timetable here.” | “The first order of business will be to get the spread of the virus under control, and then to resume economic activity,” Mr. Powell said on NBC’s “Today.” “The virus is going to dictate the timetable here.” |
| Mr. Powell’s comments contrasted with those of President Trump, who has suggested that he wants many Americans to get back to work as soon as Easter, less than three weeks away, and that efforts to slow the spread of the virus by shutting down large parts of the economy should not be worse than the disease itself. | Mr. Powell’s comments contrasted with those of President Trump, who has suggested that he wants many Americans to get back to work as soon as Easter, less than three weeks away, and that efforts to slow the spread of the virus by shutting down large parts of the economy should not be worse than the disease itself. |
| The coronavirus pandemic is inflicting enormous economic damage in the United States, as quarantines close businesses, force workers to stay at home and create uncertainty that has spurred volatility in financial markets. Mr. Powell and his colleagues have been taking aggressive measures to shore up the economy, and he used his first major interview since the crisis began to underline what they are doing — and why. | The coronavirus pandemic is inflicting enormous economic damage in the United States, as quarantines close businesses, force workers to stay at home and create uncertainty that has spurred volatility in financial markets. Mr. Powell and his colleagues have been taking aggressive measures to shore up the economy, and he used his first major interview since the crisis began to underline what they are doing — and why. |
| “You may well see significant rises in unemployment, significant declines in economic activity,” Mr. Powell said. He added that eventually the economy would bounce back, helped by central bank policy, and “we want to make that rebound as vigorous as possible.” | “You may well see significant rises in unemployment, significant declines in economic activity,” Mr. Powell said. He added that eventually the economy would bounce back, helped by central bank policy, and “we want to make that rebound as vigorous as possible.” |
| Shortly after he spoke, new data on jobless claims were released, underlining just how painful efforts to contain coronavirus have been for America’s businesses and employees. Nearly 3.3 million people filed initial jobless claims last week, a huge surge from 281,000 a week earlier and more than four times the previous record high. | Shortly after he spoke, new data on jobless claims were released, underlining just how painful efforts to contain coronavirus have been for America’s businesses and employees. Nearly 3.3 million people filed initial jobless claims last week, a huge surge from 281,000 a week earlier and more than four times the previous record high. |
| While the economic fallout from the coronavirus is sure to be severe, causing what many expect to be the biggest single-quarter drop in U.S. growth on record, Fed officials have said they are trying to put the economy into position so it can snap back once the pandemic ends and the world returns to work. | While the economic fallout from the coronavirus is sure to be severe, causing what many expect to be the biggest single-quarter drop in U.S. growth on record, Fed officials have said they are trying to put the economy into position so it can snap back once the pandemic ends and the world returns to work. |
| To do so, central bankers want to ensure that American households are well placed to borrow and spend once the economy begins its recovery. They cut interest rates to near zero over the course of two emergency meetings this month to make credit cheaper. | To do so, central bankers want to ensure that American households are well placed to borrow and spend once the economy begins its recovery. They cut interest rates to near zero over the course of two emergency meetings this month to make credit cheaper. |
| Officials are also trying to prevent the financial system from melting down amid extreme market volatility. The goal is to keep financing easily available to businesses, which could help tide them through the current dry spell. If too many companies fail and shed workers permanently, the downturn could become much more protracted. | Officials are also trying to prevent the financial system from melting down amid extreme market volatility. The goal is to keep financing easily available to businesses, which could help tide them through the current dry spell. If too many companies fail and shed workers permanently, the downturn could become much more protracted. |
| The Fed committed to buying as many government bonds as necessary to soothe markets after ruptures appeared in Treasury and housing debt. It has intervened aggressively in the market for short-term loans between banks to keep that corner functioning smoothly, and it is using its emergency lending powers to backstop corporate bonds. | The Fed committed to buying as many government bonds as necessary to soothe markets after ruptures appeared in Treasury and housing debt. It has intervened aggressively in the market for short-term loans between banks to keep that corner functioning smoothly, and it is using its emergency lending powers to backstop corporate bonds. |
| The aid legislation working its way through Congress would give the Fed money to ramp up those lending programs. The central bank had already announced facilities to help large corporations, small businesses and money market funds, backed by a Treasury Department fund containing $94 billion. | The aid legislation working its way through Congress would give the Fed money to ramp up those lending programs. The central bank had already announced facilities to help large corporations, small businesses and money market funds, backed by a Treasury Department fund containing $94 billion. |
| Now, it can scale up those programs with Treasury agreeing to take initial losses on any loans that go sour. Treasury Secretary Steven Mnuchin has estimated that the financing, $454 billion, could support more than $4 trillion in Fed operations. | Now, it can scale up those programs with Treasury agreeing to take initial losses on any loans that go sour. Treasury Secretary Steven Mnuchin has estimated that the financing, $454 billion, could support more than $4 trillion in Fed operations. |
| “When it comes to this lending, we’re not going to run out of ammunition,” Mr. Powell said. “That doesn’t happen.” | “When it comes to this lending, we’re not going to run out of ammunition,” Mr. Powell said. “That doesn’t happen.” |
| His appearance at a fraught economic moment recalled a similar one by a predecessor, Ben S. Bernanke, during the depths of the 2007-09 recession. | His appearance at a fraught economic moment recalled a similar one by a predecessor, Ben S. Bernanke, during the depths of the 2007-09 recession. |
| Updated June 5, 2020 | Updated June 5, 2020 |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| Mr. Bernanke appeared on “60 Minutes” in March 2009, six months after Lehman Brothers filed for bankruptcy and seven before the unemployment rate would peak at 10 percent. Fed chairs never appeared in television interviews at the time, making it a momentous attempt to reassure the American people. | Mr. Bernanke appeared on “60 Minutes” in March 2009, six months after Lehman Brothers filed for bankruptcy and seven before the unemployment rate would peak at 10 percent. Fed chairs never appeared in television interviews at the time, making it a momentous attempt to reassure the American people. |
| “I think we’ve averted that risk,” Mr. Bernanke said when asked if the country was headed into a new Great Depression. “Now the problem is to get the thing working properly again.” | “I think we’ve averted that risk,” Mr. Bernanke said when asked if the country was headed into a new Great Depression. “Now the problem is to get the thing working properly again.” |
| Mr. Powell’s chairmanship has been much more open, and he had done previous broadcast interviews — but never one so targeted at mass consumption as the “Today” show. He, too, brought words of reassurance, if not of certainty. | Mr. Powell’s chairmanship has been much more open, and he had done previous broadcast interviews — but never one so targeted at mass consumption as the “Today” show. He, too, brought words of reassurance, if not of certainty. |
| “Really the message is this: that this is a unique situation, it’s not like a typical downturn,” Mr. Powell said Thursday. “The Federal Reserve is working hard to support you now, and our policies will be very important when the recovery does come.” | “Really the message is this: that this is a unique situation, it’s not like a typical downturn,” Mr. Powell said Thursday. “The Federal Reserve is working hard to support you now, and our policies will be very important when the recovery does come.” |