Fed Chair : Control Virus First

Federal Reserve Chairman Powell agrees with health experts, saying control of Covid-19 spread should be the first order; not getting people back to work.

Jerome Powell, the financial expert whom Donald Trump appointed as Chairman of the Federal Reserve Bank commented that the U.S. may very well be in a recession at present because of the Covid-19 crisis. Yet he gave assurance that the country’s central bank is not likely to run out of funds even if the federal government releases the Congress-approved $2.2 trillon Coronavirus Relief Package (The CARES Act).

The Federal Reserve Chair, who rarely agrees to appear in a TV broadcast, did not give assurance on how soon the U.S. can get out of the economic slump as a result of the ongoing lockdowns. What he said in the NBC Today show last Thursday is for us to listen to the health experts, on what they are warning and instructing us to do about the pandemic.

Although Mr. Powell said there is “no blank check” to guarantee unlimited financial resources, which the federal bank can provide to support the country’s economy, he gave assurance that there is a tremendous amount the federal reserve bank could do in getting America through the Covid-19 dilemma. He said

“We have the ability to use our emergency lending authorities” … “The federal bank can continue to create loans that aim to support the flow of credit into the U.S. economy.”

The Federal Reserve Chair though, cannot say for how long the country will remain in recession, mainly because he agrees with Dr. Fauci’s statement that the virus will set the timetable. That is why he strongly recommends that the first order of business is to put the spread of the contagion under control, before considering resuming economic activity.

 

Apparently, Mr. Powell’s statement voices his disagreement with president Donald Trump’s current focus on ending the 15-day period set for the nationwide observance of social distancing restrictions.

The Significance of the Federal Reserve Chair’s Assurances

As chair of the Federal Reserve bank, Jerome Powell’s statements are assurances that businesses do not have to worry about investors pulling out support Mr. Powel has explicitly stated that

The Federal Reserve system can support things through the bank’s emergency powers.” ”Where credit is not flowing, the central bank can, and will step in to offer loans.”

The recently legislated Coronavirus Aid, Relief, and Economic Security (CARES) Act aims to do just that; aside from giving the American public financial assistance, there are several offers of relief and economic security extended to businesses that provide the sources of livelihood to workers and their families.

Even if businesses end up getting drained of resources once the coronavirus crisis is over, the federal government has already readied economic stimulus loans as a means of helping businesses get back in shape. That way, employees and workers can go back to work without fear of getting laid off and with assurance that they will receive compensation.

Still, there is a possibility that once the economic activities resume, some small to medium scale businesses will find it difficult to recover quickly. The state of California for one, which is touted as America’s largest economic contributor, has as many as 19.6 million people making up the country’s labor force. The San Francisco Bay Area, in which seven counties were the firsts to order lockdown and shelter-in-place measures, saw the immediate shut down of non-essential businesses.

Such businesses could have a need for a bankruptcy attorney san diego based may be, to help them manage financial distresses that could lead to bankruptcy.

Financial Advice To Withstand The Financial Effects Of The Corona Virus

The Covid 19 virus spreads like wildfire. To control as well as prevent the spread any further, many places across the globe have imposed strict curfews to all its residents, executed temporary quarantine periods and lockdowns while some nations have temporarily closed their borders to foreigners. These have an effect on many individuals in the workforce as their hours of work have been reduced to adhere to the orders implemented by their governments. Others, unfortunately, had to stop working since several companies and businesses were compelled to close temporarily until it is safe to open to the community again.

Know Your Financial Options During A Crisis

Losing shifts, less working hours or getting laid off would mean a big decline in daily wage. With such situation, it is now very crucial and more imperative than ever to determine what financial possibilities you have. If you don’t have any contingency fund or emergency reserve and/or are struggling to get by during these times of uncertainty, below are a few options to consider:

Consider Getting a Personal Loan

There are plenty of cheap personal loans ranging from $10,000 to $20,000 (or more) on average, with a usual payment term of two to five years. They could lend a hand during financial or income uncertainty or insecurity. Many credit unions, banks as well as online lenders offer such loans. However, you will need to look into what these various lenders offer to match up interest rates as well as other loan terms.

Utilize the Product that has Lowest Rate of Interest

If you aren’t qualified for a personal loan, you might have to make use of a credit card with the lowest rate of interest so as to pay a lesser amount of interest when you settle your bill. Even small difference of percentage points could save you lots of cash in interest settlements.

Apply for Government and/or Community Assistance Programs

In the United States, the government is presently working to carry out policies and guidelines to aid Americans who are financially strapped in crisis like this. However, there are now a lot of other means or programs offered by governments in different levels across the nation.

Food banks are an example. There are also organizations that could help with your utility bills. Social media platforms are a great place to start your pursuit for community groups. Also, your local government must be able to furnish you with helpful info on where to locate and how to contact these groups.

Send Out Momentary Hardship Letters

As per the National Consumer Law Center, if you are striving to pay your mortgage, your initial step is to look for a legal advocate. Then, you could send out letters of hardship to your lenders, such as your mortgage firm, to determine your options.

Free State of Bavaria Extends Loan Programs To Affected Businesses

Companies in the Bamberg-Forchheim region can also be affected by the consequences of the corona virus. The Free State of Bavaria assures the companies of its support and increases the citizenship volume by EUR 100 million. This includes the promotion of short-time work. Companies wishing to apply for short-time work benefits due to the virus must notify the responsible employment agency in advance. This then checks whether the requirements for funding are met. Furthermore, affected companies have access to loan programs from the Free State and the federal government. With these measures, the federal government and the Free State want to minimize the impact of the corona pandemic on the economy.

German authorities work to contain the virus

Short-time work due to the corona virus: Companies wishing to apply for short-time work benefits due to the effects of the corona pandemic must first report the short-time work to the responsible employment agency. This then checks whether the prerequisites for the service are met.

Loan programs and guarantees from LfA Förderbank Bayern: Affected companies have access to loan programs and guarantees from LfA Förderbank Bayern to deal with the economic consequences of the Corona virus. Information is available at LfA Förderbank Bayern . The LfA universal loan is available for the currently necessary safeguarding of liquidity . Tel. 089 / 2124-1000, the LfA funding experts can be reached for general inquiries and specific advice on the funding offers .