Control pandemic first, then open economy, Fed chairman says

‘First order of business will be to get the spread of virus under control, then resume economic activity,’ Powell said. The United States “may well be in recession”, but progress in controlling the spread of the coronavirus will determine when the economy can fully reopen, US Federal Reserve Chair Jerome Powell said Thursday in a rare network television interview on NBC’s Today Show. Powell’s choice of venue – a network morning show when many Americans are homebound and paying close attention – was itself part of a message that seemed meant to prepare people for the dismal economic data to come, counsel patience in any rush back to work, and reassure that the Fed would act “aggressively” to keep firms and families afloat. “The first order of business will be to get the spread of the virus under control and then resume economic activity.” The US central bank chief’s remarks are a contrast to the urging by some of President Donald Trump’s advisers for a faster reopening. But the situation is so unusual that policymakers have become atypically blunt, arguing that a deliberate choice to close stores in the name of public health, as Powell said, “is not a typical downturn … There is nothing fundamentally wrong with our economy.” But as with the unemployment claims, upcoming reports are expected to show such large jumps in joblessness and lost output that the focus has shifted toward ensuring businesses and households get through the period with their finances intact.