The President of the Federal Reserve (US Central Bank), Jerome Powell, on Tuesday expressed his “great” concern over the economic recovery from the sharp rise in Corona injuries, while stock indices on Wall Street recorded a remarkable decline.
Powell said that the sharp rise in cases of Coronavirus causes great concern for an economic recovery that still has a “long way to go”, and that the US economy will still need support in terms of both monetary and fiscal policy.
Speaking at a hypothetical seminar, Powell said the US central bank is committed to “using all our tools to support the recovery as long as it takes to complete the job,” adding that the economy is likely to need more fiscal support as well.
He also considered that the current sharp increase in the number of infections and hospitalization due to the virus is a “very great concern” because it frightens people from participating in economic activity and slows down the economy.
On Wall Street, the main indexes on Wall Street fell at the open Tuesday, as the Standard & Poor’s 500 and Dow Jones indexes retreated from the record high levels recorded in the previous session, as more US states took measures to contain the Covid-19 pandemic.
The Dow Jones Industrial Average fell 150.29 points, or 0.50 percent, to 29,800.15 points at the start of the trading session. The benchmark Standard & Poor’s 500 Index fell 16.60 points, or 0.46 percent, to 3,610.31 points. The Nasdaq Composite Index dropped 10.78 points, or 0.09 percent, to 11,913.35 points. The three indices increased their losses in early trade, according to Reuters data.
In another economic indicator, import prices in the United States decreased unexpectedly in October, as the cost of petroleum products and a range of other commodities decreased.
The Labor Ministry said on Tuesday that import prices fell 0.1 percent last month. The data for September was revised downwards, showing that import prices rose 0.2 percent instead of a 0.3 percent increase in the previous reading.
Import prices fell 1 percent in the 12 months to the end of October, after a decline of 1.4 percent in September.
The report also showed that export prices rose 0.2 percent in October, supported by an increase in agricultural export prices. There was little change in non-agricultural exports. Export prices rose 0.6 percent in September. On an annual basis, export prices fell 1.6 percent in October, after falling 1.8 percent in September.