Federal Reserve President on Do Nothing Republicans – The Economy Goes Where The Virus Goes

Ken Zino  of AutoInformed.com on Covid Crisis

If Trump continues his 4-year-old tantrum and keeps kicking his feet and holding his breathe while Covid continues unabated, he will turn into a Blue State…

Mary Daly, President of the San Francisco Federal Reserve this morning observed on CNBC that the US economy continues to expand “but at a slower pace than we had right after we came back from the shelter in place orders, and that’s really a reaction to two things. First of all, we had to ramp up to get back into activity and that caused a surge in growth, so a natural slowing is expected.

“But I also see the rising caseloads and we know that, voluntarily, people are going back into their homes; they’re less confident in going out when caseloads rise, and so I would expect some further slowing as we go forward consistent with the rising caseloads. Same thing we’ve been hearing for a while, top priority is getting the virus under control.”

“Fiscal support is really critical. When Congress came out with the CARES Act, we saw immediately how that cushioned households and small businesses and helped them get through the virus. The virus is still with us, so more is needed. …

“If we don’t get that, then this is a mini fiscal cliff, maybe even a major fiscal cliff, for the individuals who are experiencing that. …

“This is people who are out of work, who can’t find jobs because jobs aren’t available yet and their unemployment insurance runs out, then they can’t pay their rent and maybe they get evicted. And small businesses who run out of their PPP funding and need more additional support to weather the virus, so this is certainly going to impact those households, those businesses. Ultimately it impacts our aggregate economy, and the economy would have slower growth in the absence of fiscal policy than it would have if we had a long and strong bridge that fully and completely gets us through the crisis.”

About Ken Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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