[Yahoo News] Policymakers have taken a range of approaches to deal with the economic fallout from the coronavirus, from emergency interest rate cuts and big spending packages to a wait-and-see-stance and pledges of action if required.
[Yahoo News] reports on President Trump’s signing of an $8.3 billion dollar emergency spending bill to combat coronavirus spread and work toward a vaccine. The administration may also take steps to stimulate the U.S. economy amid the outbreak according to one of the top economic advisors, Larry Kudlow. Investors expect more cuts in rates by the U.S. Federal Reserve in response to the financial hit resulting from fears over COVID-19.
Trump’s actions after the drop in the stock market on Monday revealing record-setting decline of 2,000 points on the Dow Jones average, include a “possible payroll tax cut or relief,” similar to his proposal from the one he floated back in August, but this proposal addresses the increasing concern that the world economy could buckle under the weight of the coronavirus outbreak, which has crippled output and consumption in China. Trump’s strong suit while in office has been reflected by the robust state of U.S. economy, yielding significant gains in the Dow Jones until three weeks ago when impacts from the Coronavirus started to reveal themselves in world trading. Trump is also promising assistance to hourly workers who do not have sick leave in an effort to keep them home so they do not become part of the spread of the disease. He is presently crafting a plan with employers to secure viable measures, and will be meeting with senators today to discuss possibilities that will keep American workers stable.
China has earmarked 15.9 billion and Beijing has ramped up funding support for virus-hit regions, while the country’s central bank has cut several of its key rates; Japan developed a dramatically increased 15.6 billion package from government financing to be announced today; the U.K. is waiting on more clarity to decide next actions; Italy has increased their allocations to 8.4 billion; in Germany, Angela Merkel’s conservatives are split over whether Germany should rush out a fiscal stimulus package to counter any impact of the coronavirus on Europe’s largest economy; the Bank of Canada lowered interest rates; South Korea has devised a stimulus package of 9.8 billion to cushion negative impacts from COVID-19; an official said the RBI might inject as much as 1 trillion rupees ($13.6 billion) in the round that will begin as early as April, to maintain market confidence and preserve stability; France is allowing companies to suspend payments of some social charges and taxes, and is activating state-subsidized short-time work schemes, while the European Union is giving governments fiscal leeway to individually deal with the economic impact of the coronavirus and may decide on a more concerted stimulus if the economy suffers severely.
Economic impacts will affect Americans.
The financial impact of the coronavirus will impact all Americans and should be taken seriously as travel bans are placed, shortages of supplies including oil will trickle down to consumers, and employment may be adversely affected if employers cannot make their bills when the supply and demand chains have been altered with no end in sight. While the CDC and other federal and state government agencies are taking action to protect U.S. health against COVID-19, the financial hierarchy must step in and take any actions necessary to secure world economic stability and maintain a healthy U.S. economy as well.