The President of the Cleveland Federal Reserve Bank said on Tuesday that Congress must allocate more funds to ensure that the economy can recover and avoid the "terrible scenarios" that could unfold as the pandemic hits. coronavirus continues.
"I think we need more direct fiscal policy and support to try to limit the possibilities of these very serious scenarios," Mester said during a conference call with reporters. .
In a previous conversation with the CFA Society of Chicago,
But it was not difficult to imagine worse results, "especially if an increase in virus cases requires a new closure, or if there is considerably more harm in terms of business bankruptcies and personal or if instabilities arise in the banking system, "said Mester. .
"Some of the more pessimistic results are almost as likely as the reasonable baseline I have just described," he added.
Mester declined to participate in a discussion on the merits of the House of Commons $ 3 billion coronavirus rescue plan presented by the Democrats Tuesday morning.
Read: House Democrats Watch Friday Vote on Coronavirus Measurement
She said the costs of the pandemic are increasing as it persists, damaging more people and businesses.
"It is a much bigger need than we all thought at the start." But that’s the nature of it all, because it’s the virus that dictates the moment, "he said.
Mester said businesses in his district had declared at the start of the pandemic that they had every intention of keeping their employees on their payroll.
But companies have underestimated the duration of the crisis. "And as you can see, week after week, the attitudes of businesses, especially those most affected, have declined week by week," said Mester.
Benchmark index for US stocks USA They finished lower Tuesday on concerns about the prospects of a reopening of the economy. The S&P 500 Index
SPX
-2.05%
closed 60 points, or 2% at 2870.