Fed Chair Jerome Powell outlines the path to recovery

Jerome Powell, head of the Federal Bank, did an historic 60 Minutes interview this past week outlining the prospects for the U.S. economy.

He made three main points:

1. Excellent leadership in virus management, including broad based testing and citizen’s/businesses following health leaders recommendations, is the most important metric for our economy right now

2. Congressional support for small businesses and individuals during this period to avoid AVOIDABLE insolvencies is critical

3. We are an economically strong nation and we should be able to weather this

He stated that one of the biggest risks we now face is that the reopening of our economy fails and we have to re-close the economy. He states this would damage positive economic sentiment.

Chairman Powell states, “The thing that matters more than anything else is the medical metrics, frankly. It’s the spread of the virus.The real time economic data we are seeing is just a function of how successful the social distancing measure are. So, the data we will see for this quarter which ends in June will be very, very bad.It’s be a big decline in economic activity, a big increase in unemployment. What we are really looking at is getting the medical data, which is not what we usually look at, taken care of, so the economy can recover.”

In other words, the most dangerous thing to our economy now is the right wing Trump followers running around touching each other, ignoring social distancing and refusing to wear masks. For if they ignite a relapse of infection, the following downturn of the economy could be more damaging that the initial isolation orders.

Trump’s curious efforts to get his followers to ignore social distancing, mask wearing and other mandates of scientists and health experts are exactly the opposite of what will help our economy.

Chairman Powell, regarding his recommended economic policies, says:

“Policies that help businesses avoid avoidable insolvencies and do the same for individuals. Keep workers in their homes, keep them paying their bills. Keep families solvent.” He stated that lengthening the unemployment benefits and other financial tools available to Congress will assist with avoiding unnecessary financial losses and save businesses and families.

These measures will increase our economic strength:

Virus policies:

1. Social distancing

2. Wash hands, don’t touch face

3. Wear a mask when out of home near other people

4. Testing/case followup

Economic policies:

1. Congressional financial support of SMALL BUSINESSES

2. Congressional financial support of FAMILIES AND INDIVIDUALS

Trump’s and Republican’s refusal to do either of these actions well is damaging our nation, our economy and the odds of our very survival as a democracy.

The question, “If the economy reopens and infection surges, what then?” was answered by Chairman Power as the following:

“The government would have to reintroduce social distancing measures and we would have another downturn and that would be bad for confidence. That is a risk we want to avoid. The virus hasn’t gone away. The reason cases have gone down is that people have been in their homes and not in their business and out among crowds.”

Trump followers’ militant refusal to support the above virus and economic policies are damaging our nation.

It’s past time for them to stop. They have shamed and damaged our nation beyond belief. It is truly time for these Rambo wannabes to stop. Yesterday would have been a good time.

Link to the 60 Minutes interview:

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