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United states : the health crisis could permanently destroy areas of activity

The health crisis could permanently destroy some sectors of activity if they were shunned by customers, despite the relaxation of containment measures, according to the minutes of the last meeting of the monetary committee of the federal Reserve (Fed), released this Wednesday.

read also : United States : the Fed grows to even more public spending

The Fed was concerned that "some business models may no longer be economically viable, for example if consumers continued to avoid participation in certain economic activities", according to minutes of the meeting of 28 and 29 April. The members of the monetary committee are also concerned that many small businesses could not resist the long-lasting effects on their finances of this shock, in spite of the aid provided by the stimulus plan in the us to allow them to continue to pay wages. They identified that some areas had been particularly affected, citing the air transport, cruises, restoration, and tourism. The energy sector could also experience a "wave of bankruptcies" if the price remained low.

The containment measures put in place since march in the United States have brought to its knees the economy, which was one of the main arguments of the campaign of Donald Trump for his re-election to the White House. The president is eager to see the economy go. But the debate rages between proponents of a rapid reopening and those who warn about the dangers of a second wave of contamination.

layoffs temporary could become permanent

The pandemic is weighing on the economies of many of the risks in the medium and long terms, have also identified the members of the monetary committee of the Fed. They fear as well that the workers who lose their jobs do not "lose their skills", but also "access to services for the care of children or care of the elderly", or are "discouraged" and no longer seek employment. "Some layoffs temporary could become permanent", are afraid of-they.

at the end of its meeting, the Fed had kept rates in a range of 0 to 0.25%, a level at which she will leave until she is confident that the economy "survived" to the health crisis. The central Bank had also promised to do everything she could to save the american economy, which should, however, "to fall at an unprecedented pace in the second quarter, after a decline of 4.8% in the first quarter. The chairman of the Fed Jerome Powell spoke Sunday to a fall in GDP of 20% to 30%, and a peak likely in the unemployment rate to 20% or 25%.

1 commentairele 20/05/2020 23:11

Number one .

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