US Fed chief Jerome Powell says wearing masks could lead to 'enormous economic gains'

The United States Federal Reserve Chairman, Jerome Powell, said that wearing masks and social-distancing measures could lead to "enormous economic gains" for the US economy. This statement came on September 4 after the Labor Department reported that the US employers had added 1.4 million jobs in August and the unemployment rate had dropped by 8.4 per cent. Powell also revealed that the Central Bank will keep short term interest rates at a level of zero in order to contribute in the process of recovery of the economy.

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US economy on its way to recovery 

ANI quoted Powell saying, “So certainly to get us back to full employment, we're going to need to get the spread of the disease under control. And the best way to do that, short of arriving at a vaccine, is to take these social-distancing measures and employ them”. He added, “There are actually enormous economic gains to be had nationwide from people wearing masks and keeping their distance”.

The country’s economy had plunged into the deepest crisis since the Great Depression due to the novel coronavirus crisis. Talking about the economy, Powell said that “We think that the economy's going to need low-interest rates, which support economic activity for an extended period of time. It will be measured in years ... we're not going to prematurely withdraw the support that we think the economy needs”. 

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Few days back, a leading US broadcaster reported the annual business investments to have plunged to the lowest level in 68 years due to nearly stalled consumer spending. Despite in April, reports stated that over 20 million American jobs vanished with closure of businesses, the Trump administration claimed that the job creation skyrocketed. However, the Republicans touted the return of 1.8 million jobs in July, however, US media reports stated otherwise. Nearly 60 percent of jobs that were lost amid the COVID-19 pandemic have not returned, a news agency reported. While the US recently accounted for 5.4 million job openings, it wasn’t enough for the more than 30 million on the unemployment benefits, as per the report.  

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(With Inputs from ANI)

(Image Credits: AP)