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The number of unemployment benefits rises to a record high of 3.28 MILLION

U.S. unemployment claims have risen to 3.28 million – four times the previous record – as a result of the coronavirus pandemic that is crippling the world economy and shattering Trump’s record-breaking unemployment depths.

Three million people filed claims between March 14 and March 21, according to a staggering report released by the Department of Labor on Thursday morning.

In the week ending March 14, the number of initial claims was 282,000, which means that there have been 3,001,000 new claims since then.

The previous record high was 695,000 in October 1982. According to the report, service companies – especially food and accommodation – have been hit hardest, but those claims also come from healthcare and from people working in industry, entertainment and the arts.

The highest number of new claims was in Pennsylvania, where there were over 360,000. California saw an increase of 130,000 and there was an increase of 180,000 in Ohio.

But the data doesn’t reflect the fact that since March 21 – when the data was collected – states like New York have closed all nonessential businesses, sending millions home from work.

There is also anecdotal evidence that people who have attempted to file online claims have been unable to do so, and there are millions of people in the country who, despite their unemployment due to the virus, are not eligible to file due to their immigration status or visa requirements .

A chart released by the Department of Labor on Thursday morning shows that unemployment claims rose by three million between March 14 and March 21

A chart released by the Department of Labor on Thursday morning shows that unemployment claims rose by three million between March 14 and March 21

People wait in line at an unemployment center in Las Vegas on March 17. Millions have been forced to lose their jobs because of the virus

People wait in line at an unemployment center in Las Vegas on March 17. Millions have been forced to lose their jobs because of the virus

People wait in line at an unemployment center in Las Vegas on March 17. Millions have been forced to lose their jobs because of the virus

The essential business list keeps restaurants open, but only for takeout. Many, despite being technically allowed to stay open in a limited way, simply cannot afford because there are no dinner customers.

Shuttered companies include all shops, beauty salons, barber shops, night clubs and bars.

The report cited the COVID-19 virus as the reason for the escalation.

WE WILL NOT TAKE AMMUNITION – FED RESERVE PRESIDENT SAYS WE WILL NOT COME OUT OF MONEY

Jerome Powell said the Federal Reserve would provide essentially unlimited loans to support the economy, as long as it is damaged by the viral outbreak.

In a rare interview on NBC’s Today on Thursday, the Fed president said that the bank’s efforts are aimed at helping the economy recover quickly once the threat of the virus has passed.

When asked if the Fed would run out of ammunition to support the economy, Powell said no.

“When it comes to this lending, we won’t run out of ammunition. That’s not going to happen, “he said.

Still, the Fed president said the path of the economy largely depends on the length and severity of the viral outbreak. Fed policy is likely to have the greatest impact when the economy starts to recover, which he says could happen in the second half.

“We know that economic activity is likely to decline sharply in the second quarter … It will really depend on the spread of the virus. The virus is going to dictate the schedule here, ”he said.

“When the economy starts to recover, we will be there to ensure that the recovery is as strong as possible.”

Powell also acknowledged that the economy may “be” in recession, but said this is a unique downturn as it was caused by efforts to control the disease.

He said the economy itself was strong before the outbreak started.

“If we get the virus under control fairly quickly, economic activity can resume and we want to make that recovery as powerful as possible,” Powell said.

In the week ending March 21, the increase in initial claims is due to the effects of the COVID-19 virus. Almost every state that made comments mentioned the consequences of the COVID-19 virus.

States continued to call the services sector in general, particularly housing and food services.

Additional industries heavily cited for the increases included health and social assistance, arts, entertainment and recreation, transportation and storage, and the manufacturing industry, the report said.

Industry experts are faltering.

Even knowing that tens of thousands of companies have closed their doors in response to Covid-19 restrictions, the peak of 3.3 million in initial claims is still shocking.

This is clearly the result of the city and state closings that have spread across the US as a response to curtail Covid-19.

Pennsylvania reported the highest number of claims (378,900), while Ohio reported 187,800, Illinois 114,700, 186,800 in California and 80,300 in New York.

The last two states appear low on anecdotal evidence, which may indeed reflect problems with websites crashing and phone lines jamming and a general reluctance of people to align with many other plaintiffs in the current environment.

“We expect figures from these and other states to increase in the coming weeks, especially as the number of lockdowns in the United States increases,” said James Knightley, Chief International Economist at ING.

Quincy Crosby, Chief Market Strategist for Prudential Financial, said it had sent “chills” to the market.

“This is a record number. The song has sent chills through the markets.

“If these figures last three or four weeks, there will be a demand for more tax support. Even monetary support from the Federal Reserve, which has moved to the fiscal territory in a number of ways that deviate from their usual focus on monetary policy.

“The question was how much the market was marked down in terms of weaker than expected data?

“If the market can stabilize after opening, it will suggest that government players expect a bigger stimulus package or fiscal package than the agreed $ 2 trillion. It will have to be expanded, “he said.

“This is a record number. The song has sent chills through the markets.

Quincy Crosby, Chief Market Strategist for Prudential Financial

Others said it would take months to recover the numbers.

Unemployed claims were terrible. I think the market thought it would be terrible so they got their number here.

“You’re likely to get a bad number – maybe not that bad – next week, and the payroll in April will be terrible. We are still a few months away from getting higher, ”said Stan Shipley, Macro Research Analyst at Evercore.

The virus has killed more than 1,000 people in America and 20,000 around the world since November.

Despite efforts by the government to ease the economic burden, companies have already folded.

On Wednesday evening, Congress signed an incentive plan with higher unemployment benefits for workers.

How much they will receive depends on what they earned when they were out of work, but the plan guarantees the new rates for four months.

Some unemployed people can now expect to receive more than $ 1,000 a week in unemployment benefits. Separately, almost all employees who earn up to $ 95,000 receive a check for $ 1,200.

But the checks are not expected to hit people’s mailboxes until May.

Trump promised earlier this week to reopen the economy by Easter. He has since walked back on that deadline and says he will follow the advice of doctors such as Anthony Fauci, White House coronavirus expert.

“We may be in a recession”: Fed Chairman Jerome Powell says the corona virus will dictate the reopening of the economy and turn its back on Donald Trump’s criticism, claiming the president doesn’t take central bank thinking into account

Federal Reserve President Jerome Powell said the country may “be in recession”

Federal Reserve President Jerome Powell acknowledged on Thursday that the United States “may be in recession” and said the corona virus should dictate when the economy opens up again for business.

“We may be in a recession,” Powell said in a rare television interview.

“I would like to point out the difference between this and a normal recession,” he told Today.

“This is not something wrong with the economy. This is a situation where people are asked to step back from economic activity, shut down their businesses, stay home from work, so if we get the virus under control fairly quickly, economic activity can resume. And we want to make that recovery as powerful as possible. ‘

His appearance comes after the Senate passed a $ 2 trillion bill designed to boost the economy through loans to small businesses, direct controls to Americans, and aid to industries hit hard by the virus.

President Donald Trump has used an Easter deadline – which is April 12 – for US companies to resume normal business and facilitate social distance guidelines designed to stop the spread of the virus.

But Powell wouldn’t commit to a date when asked. He advised listening to medical experts – such as Dr. Tony Fauci – and said the coronavirus would dictate when the economy opened again.

“We’re not pandemic experts here, we can’t make that decision,” Powell said. “I would say you know we tend to listen to the experts. Dr. Fauci said something like the virus is going to set the timetable and that sounds good to me. ‘

He added, “I think the first step will be to control the spread of the virus and then resume economic activity.”

Powell admitted he looks to the second half of the year to see the economy return.

“The sooner we get through this period and get the virus under control, the faster the recovery can take place,” he said. “I would expect economic activity to resume and rise again in the second half of the year, very difficult to say exactly when that will be and it will really depend on the spread of the virus. The virus is going to dictate the timetable here. ‘

President Trump appeared to be withdrawing the Easter deadline on Wednesday, saying he would not make a hasty decision and that he would be Fauci, the director of the National Institute of Allergy and Infectious Diseases, and Dr. Deborah Birx, who coordinates the day, would consult. daily response to the coronavirus.

Fauci warned on Wednesday that a second cycle of the virus could come.

“Could this possibly be a seasonal, cyclical thing? I think it could be very good, ”he said during the daily briefing on the corona virus in the White House.

President Trump, meanwhile, warned he wouldn’t do anything “brash” to reopen the economy.

“I’m not going to rush or rush,” he said during his daily White House press briefing.

Trump has been a vocal and fierce critic of Powell and the Fed. He has complained repeatedly and publicly – in interviews and on his Twitter account – when he thinks the central bank isn’t cutting interest rates fast enough to kick-start the U.S. economy.

Powell shrugged off that criticism, saying the fed “won’t let anything else get into our minds.”

“My colleagues and I here are fully focused on our mission to serve the American people. We know that what we do is important to all Americans. And we are trying our very best to serve them in a way that is completely non-political and non-partisan, ”he said.

“We don’t let anything else come to mind and I think, you know, it always works like that. We have a very strong culture. That’s deep in our DNA and that’s exactly how it ‘always will be,’ he added.

Last week, the Federal Reserve cut interest rates to almost zero to try to stimulate economic growth.

“This is a unique situation,” said Powell. “At some point, we get the spread of the virus under control. And then confidence returns, companies open again, people return to work. ‘

Powell acknowledged that “significant” unemployment increases were on the horizon, but argued that this would disappear when the virus was under control.

“You may see, you know, a significant rise in unemployment, a significant drop in economic activity,” he said.

“But there could also be a good upturn on the other hand, and that’s actually one of the main things we are trying to do by ensuring the flow of credit in the economy and keeping interest rates low is to ensure that upturn, when it does come is as powerful as possible. ‘

And he vowed that the fed would not “run out of ammunition” to protect the economy.

“When it comes to this lending, we won’t run out of ammunition. That’s not going to happen, “he said.

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