Economics in the News – March 16-22
Economics impacts our lives every day. Below are some of the top storylines from this past week in economic news.
- Neel Kashkira, a former Treasury official and current president of the Minneapolis Federal Reserve, spoke with Scott Pelley on 60 Minutes on measures that the Federal Reserve is willing to take to combat the coronavirus and the economic stress that it’s causing.
- The United States government announced that it will postpone this year’s tax deadline by 90 days from April 15 to July 15 to help combat the coronavirus. The delay is available for families who owe $1 million or less. [Wall Street Journal ($)]
- The coronavirus has impacted Wall Street dramatically again this past week, wiping away all of the gains since President Trump’s inauguration. The Dow Jones Industrial Average (DJIA) finished the week at 19,173.98 – 17% lower, the largest drop since Oct.2008. [CNBC]
- The Federal Reserve announced an emergency rate cut to assist in combatting the coronavirus, slashing its benchmark rate to near-0%. The target federal funds rate was moved between 1% and 1.25% to between 0 and 0.25 percent. In addition, the Fed announced at least $700 billion in quantitative easing. [Investor’s Business Daily]
- With the global economy suppressed by the work stoppages and quarantines caused by coronavirus pandemic, the Organisation for Economic Co-operation and Development (OECD) warned that the recovery may take longer than hoped. Angel Gurría, the OECD secretary general, warned of a years-long economic fallout and that many of the world’s largest economies would enter a recession. [BBC]
- How has the coronavirus impacted the sports world? The Independent looks at how the many sports, leagues and events around the world are handling the pandemic.
- The International Olympic Committee (IOC) will soon make its decision about whether or not to postpone the Olympic Games, scheduled to take place in Tokyo this summer. USA Today reports that while the IOC is considering postponement, Canada and Australia became the first two countries to announce that they would not send Olympic or Paralympic athletes to Japan.