The coronavirus and the economy
The coronavirus is the beginning of the new crisis.
These days only the coronavirus matters, but from the economic centers the problem is being mistakenly addressed.
Coronavirus is a health problem, where there are still no specific medications and where the population suffers from lack of information, and therefore a little panic.
And since the Fed has made a move that is to lower the price of money. According to the EDF for the coronavirus.
But the solutions to the pandemic must be medical. And by restoring confidence and eliminating panic, people will return to their normal life.
Maybe we will see some Holy Week parties where there are many fewer trips and the tourism sector is affected, hotels, airlines, bars, etc., will be harmed but it is that other sectors will be benefited, video games and television will enjoy more users .
What has the Fed done at this time? Perhaps they are beginning to see US economic data that is beginning to be bad, Markit’s composite PMI for the month of February of 49.6 indicating contraction, sales of vehicles and trucks less than expected. This should worry the Fed. But the problem is that the Fed does not have much more ammunition since it did not practically reduce the purchase of bonds and its balance is already very high.
In my opinion, bad employment data in the US is inevitable in the coming months. Against this crisis of the coronavirus, it is fought by giving confidence immediately, if distrust is stopped, employment data will start to be bad and we will be in recession. The re-election of President Trump is at stake.
After President Trump comes Biden Now that Donald Trump is no longer president, it is time to evaluate his presidency. Read more
The trade war with China reaches the internet. Tiktok and WeChat affected. Donald Trump's government will ban download of WeChat Read more
US announces end of preferential treatment for Hong Kong. "I have signed a decree that ends the United States' preferential Read more
Trump campaign ads banned on Facebook, dangerous precedent. Facebook took unprecedented action against the reelection campaign for President Donald Trump, Read more
The Federal Reserve acts fast and strong. After days of insistent pressure from the president, the US Federal Reserve (Fed) Read more
The Fed's rescue plan aimed at guaranteeing the liquidity of the municipalities will also continue until December. Investors remain wary Read more
Slow and risky recovery. "The recovery in the economy is extraordinarily uncertain and will largely depend on our success in Read more
The expected decision finally arrived: the Federal Reserve announced on Wednesday, the third consecutive 25-point cut in interest rates in Read more
In his speech on Friday, the president of the Federal Reserve of the United States, Jerome Powell admitted that, although Read more