{"id":5761,"date":"2020-04-03T09:17:23","date_gmt":"2020-04-03T06:17:23","guid":{"rendered":"https:\/\/vastuullisuusuutiset.fi\/?p=5761"},"modified":"2020-04-03T14:26:53","modified_gmt":"2020-04-03T11:26:53","slug":"as-millions-lose-jobs-fed-policymakers-say-recession-is-here","status":"publish","type":"post","link":"https:\/\/vastuullisuusuutiset.fi\/fi\/vauen\/as-millions-lose-jobs-fed-policymakers-say-recession-is-here\/","title":{"rendered":"As millions lose jobs, Fed policymakers say recession is here"},"content":{"rendered":"

The U.S. recession is here. How long it will last will depend on the course of a viral pandemic that could still kill hundreds of thousands of Americans, and has most of the country under lockdowns aimed at slowing the infection\u2019s spread.\u00a0But how quickly the world\u2019s biggest economy will recover will depend on how much aid the government gives it, and how effectively it can be used to stem what are already millions of job losses, Fed officials said on Thursday.<\/p>\n

\u201cOne thing we know from 2008, when you had millions and millions and millions of Americans losing their jobs, it took more than a decade to put the labor market back together,\u201d Minneapolis Federal Reserve Bank President Neel Kashkari said in a webcast townhall event. \u201cI\u2019m really pleased that a lot of the action by the federal government and the state governments has been focused on trying to keep workers in their jobs.\u201d<\/p>\n

Kashkari was referring to the brand-new $350 billion Paycheck Protection Program, due to be rolled out on Friday to provide small businesses with grants to keep their workers on the payroll.\u00a0 The program is a key part of the $2.2 trillion coronavirus rescue package passed by Congress last week.<\/p>\n

In the past two weeks 10 million Americans have newly filed for unemployment insurance, a figure Kashkari called \u201cshocking and disturbing.\u201d His wife, who worked at a corporate travel management company, is among the legions of newly jobless Americans, he said.\u00a0If employees remain attached to their former jobs, he said, the recovery may be faster because companies will be able to restart much more quickly.<\/p>\n

If businesses cannot reopen and cannot keep their employees on the payroll, \u201cyou would see waves of thousands of business going through bankruptcies (and) that is what would lead to a long, much more shallow recovery.\u201d\u00a0 A 15% unemployment rate would mean 24 million Americans out of work. The rate was 3.5% in February, and peaked at 10% during the Great Recession<\/p>\n

While he expects the unemployment rate to drop to around 8% by year\u2019s end, Kaplan said, \u201cit will take us a while to work that off.\u201d\u00a0Rescue efforts for the economy, including the $2.2 trillion package passed last week, are essential, he said. But \u201cthere\u2019s going to have to be more fiscal action,\u201d Kaplan said.<\/p>\n

Source: Reuters<\/a><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

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