Many states in the USA are currently thinking of putting a stop on reopening decisions after seeing a massive spike in the number of coronavirus cases. Now president of federal reserves Eric Rosengren said the current situation might put economy again in a bad situation. Fed’s president says he has doubts about the current situation through which the US is going. Currently, every state follows the orders of reopening, but they are losing the long term benefits. As of now, most of the states that reopened the economy are on the opposite side of this decision. The number of cases in the USA are increasing at a very high rate.
This doubt had been raised earlier also by the Central Bank’s president Jeremy Powell. He said the virus is going to affect the viability of full economic rebound for a long time. People suffer the most because of coconuts, which causes lots of trouble for states economically. Rosengren said that as long as the virus is here in this country, we will not recover the economy like it was before entirely. This threat is going to affect the process of economic recovery, and the government will have to consider this fact.
People are still not following the required precautions, like wearing masks and other things. Things are escalating from the government’s hands quickly, which is getting problematic for the whole nation. The labor department’s data shows that new jobs created were just 1.8 million for July compared to 4.8 million in June. The Labor Department report shows half of the people who lost their jobs during a pandemic situation have recovered it, but the rate is getting slower every week. Considering the situation, the Fed’s chairman is having doubts about the full recovery of the economy.