Fed officials see risk in the re-open economy that is very early, but they recognize the need for action – the Money Times

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The Federal Reserve
On separate occasions this week-on Wednesday, the presidents of the Feds regional, they requested the testing is almost universal (Picture: Reuters/Brendan McDermid)

The authorities of the The Federal Reserve (The federal reserve, the central bank of the The United States) are starting to deal with all the complexities about how to re-open the country’s economy and at the same time to guard against the re-emergence of infection by a coronavirus, targets that could not be separated successfully.

On separate occasions this week-on Wednesday, the presidents of the Feds are regional they asked for the tests is almost universal support for the tax is more complete for firms, households, and governments, and has given rise to worries that some states may be ready to start your savings before you have a view of the peak of the disease.

Some of the coastal states which have imposed some of the strictest rules of social distancing to slow down the virus that have formed a working group to plan for a re-opening, as the cases may be nearing a peak. The other, the slower the shut-down of their economies, they can be delayed.

The president of the Atlanta Fed, Raphael Bostic, said in an interview with Yahoo Finance, which in the southern part of the USA, which is in his district, to the south of the USA, there is a great deal of variation in terms of how accurate they have been on the block”.

“I’m going to look at all of the markets in my district, in order to better understand how this upward trajectory, and that the peak will come soon, so that we can come to an end that much sooner. If you do this stretch in a few parts, you may have to wait a little longer.”

Even though the period of time between April and June should show a strong economic contraction, the federal reserve president of St. Louis, James Bullard, said the U.S. can not afford to pay indefinitely for a 25-billion-dollar-per-day, and the cost of loss of production estimated by it, for the sake of the current block.

But re-opening that needs to be done with safety, a national plan for the management of risk, ” he said at a Chamber of Commerce in St. Louis, in a Webcast.

The president of the Fed of Chicago Charles Evans, stated that a protocol is decided, you need to have protection against the re-emergence of the virus, and the need to use it again at a large distance is to be social.

“If you try to re-open the business soon too, and then we will have another wave… then it will be a great race for a longer period and it can be very, very, very expensive,” he said.

If it means keeping the economy closed, and for a longer time, Evans said, then the u.s. authorities are required to prepare a safety net, making it still more permanent.

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