The Dow Jones industrial average fell 62.62 points, or 0.26% to 23702.16 points, and Standard & Poor’s fell 6.05 points or 0.21% to 2864.07 points, while the Nasdaq Composite Index rose 3.49 points or 0.04% to 9006.05 points, according to Reuters.
The US Federal Reserve chief warned on Wednesday that Coffid-19’s damage to the US economy may be “long-term,” explaining that urgent aid plans in this framework are “expensive” for sure, but are inevitable to avoid a major recession.
“Additional budget support may be costly but worth the effort if it permits to avoid long-term economic damage and allows us to achieve a stronger recovery,” Jerome Powell said in a speech.
“The current slowdown is unique as it is due to Covid-19 and the measures taken to contain it,” he added.
To date, Congress has provided $ 2900 billion in budget support to families, institutions, health care providers, and local states and municipalities, “or about 14% of gross domestic product.”
Powell stressed that “the recovery may take time before it accelerates,” adding that additional assistance is needed to combat the effects of the emerging corona virus.
He stressed that “the size and speed of the recession is unprecedented” in contemporary history “in the worst recession since the Second World War.”
He declared that the gains made in the employment sector in the past decade had evaporated.
The US economy shrank by 4.8% during the first quarter of this year, which came more than the expectations of analysts who estimated the contraction by 4%, under severe pressures imposed by the outbreak of the Corona virus globally, and by a greater percentage in the United States.