The White House underestimated the impact of Covid-19 on the US economy

President Donald Trump has not yet approved economic stimulus measures. Photo: Getty.
President Donald Trump has not yet approved economic stimulus measures. Photo: Getty.

Although Covid-19 was threatened to become an unprecedented pandemic in the United States, President Donald Trump has yet to introduce any stimulus measures.

When the Covid-19 epidemic threatened to promote the longest US expansion in history, President Donald Trump has not yet approved the stimulus measures that the former US presidents had launched during the crisis.

The White House has not proposed any official plans to address stock market fluctuations and growth slowdown due to the widespread spread of Covid-19. Instead, the White House expressed hope that the Federal Reserve would take the necessary steps to protect growth.

According to a senior government official, reducing the cost of lending is central to the discussion on economic relief in the context of an outbreak. However, officials doubt whether these options become policies.

“A lot of things being discussed will never be done,” the unnamed official said.

On March 3, the Central Bank of America made an urgent cut of the standard interest rate. This is the first time they have taken such a measure since the global financial crisis in 2008.

According to the FedE tool of CME Group, it is almost certain that policy makers will cut interest rates again in the coming months.

In an interview with Bloomberg on May 5, the White House economic adviser, Larry Kudlow, painted a pink picture of the US economy and denied the growing economic recession. He said the excessive panic before the outbreak caused global business activity to reel and plummet financial markets over the past week.

“We have not yet taken any measures. The economy is still in good condition,” Kudlow said.

“I know that there will be an economic slowdown in the near future. But when talking to the president about this, we are not scared, because the economy has stabilized and the United States will overcome that.” This, then the Covid-19 translation ended, “he emphasized the point.

President Donald Trump last week said a package of tax cuts, which the US administration announced before the Covid-19 outbreak, would face opposition from the Democratic Party.

“The most important thing is that the Fed does its job well. I don’t think the Democrats will approve any tax cuts. They prefer to raise taxes instead of reducing taxes,” the president said.