Corona in the US: Fed banker recommends hard lockdown

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DThe central bank Neel Kashkari believes that the American economy, which was badly hit by the corona crisis, could ultimately benefit from a four to six week long “really hard” lockdown in the country. The economy can achieve a strong recovery, but only if that is the case Virus under control, the President of the Minneapolis Fed told CBS on Sunday.

“If we don’t, and if we only have this rampant virus that will spread across the country with repeated outbreaks and local lockdowns over the next year or two, which is quite possible, we will see many, many more bankruptcies. “Then the recovery will be much slower for everyone,” warned Kashkari.

For federal aid

To the Dispute between Congress Democrats and the White House over new Corona aid Kashkari said the country could afford generous help for the unemployed. Thanks to the high savings rate, the United States would not have to finance its budget deficit through external debt. “It actually means that we as a country have a lot more resources to support those who have been released.”

The corona crisis has triggered an economic downturn in America and set the world’s largest economy back for years. The gross domestic product (BEEP) shrank in the second quarter by an annualized 32.9 percent. At the beginning of the year, there was a huge minus of 5.0 percent. Consumption, investment and the export economy suffered massively in the spring from the consequences of the pandemic, which is far from over in view of the many new infections.

More than 4.6 million people in the United States have been proven to have signed up with the Coronavirus infected. 58,947 new infections were reported within 24 hours, the authority announced CDC (Centers for Disease Control and Prevention) on Sunday. The total number rose to 4,601,526.

The number of Deaths in connection with the virus increased by 1132 to 154.002. The United States is by far the most affected country in the world in both infection and death count.

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