Dallas Fed president calls policies relief, rather than stimulus
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From emergency cuts to interest rates to providing capital for businesses, the Federal Reserve has taken numerous steps to curtail the economic fallout from COVID-19.
But even with various relief efforts from Congress and the central bank, many small businesses and consumers could take a while to recover, according to Robert Kaplan, president and CEO of the Federal Reserve Bank of Dallas. Kaplan spoke with “Marketplace” host Kai Ryssdal about how the Fed is navigating the pandemic, and what the economy will look like when it’s over.
“By the end of the year, we’ll have a higher unemployment rate than we did going into it. And we’ll have to spend 2021 working that down,” Kaplan said. “That’ll be a different situation, very different than the one we’ve been experiencing the last two or three years.”
Click the audio player above to hear the interview.
COVID-19 Economy FAQs
Which businesses are allowed to reopen right now? And which businesses are actually doing so?
As a patchwork of states start to reopen, businesses that fall into a gray area are wondering when they can reopen. In many places, salons are still shuttered. Bars are mostly closed, too, although restaurants may be allowed to ramp up, depending on the state. “It’s kind of all over the place,” said Elizabeth Milito of the National Federation of Independent Business.
Will you be able to go on vacation this summer?
There’s no chance that this summer will be a normal season for vacations either in the U.S. or internationally. But that doesn’t mean a trip will be impossible. People will just have to be smart about it. That could mean vacations closer to home, especially with gas prices so low. Air travel will be possible this summer, even if it is a very different experience than usual.
When does the expanded COVID-19 unemployment insurance run out?
The CARES Act, passed by Congress and signed by President Donald Trump in March, authorized extra unemployment payments, increasing the amount of money, and broadening who qualifies. The increased unemployment benefits have an expiration date — an extra $600 per week the act authorized ends on July 31.
You can find answers to more questions here.
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