The Federal Reserve’s Rate Cut
The Federal Reserve cut the fed rate by 0.5% on an emergency basis. This means they think the economy could be headed for serious trouble. Their reasoning is that international trade could seize up as the fears of spreading coronavirus contagion lead to panicky decisions by individuals and governments. Supply chains for global commerce are being effected by the shut down of large elements of Chinese manufacturing. Tourism and travel are being impacted, as people are being cautious with those kinds of elective spending in the face of the unknown. I’m skeptical that an interest rate cut is going to have much effect, but at least they are trying.
The House just passed with a strong bi-partisan majority a substantial increase in funding for vaccine development and for public health. President Trump seems out of touch with the potential severity of the crisis and his administration’s lackadaisical approach to it during the two plus months they had to prepare. This may be a good thing as he could produce lots of panic with his habitual disinformation tweets and typically ill-informed public utterances. On the other hand, we really should have been ready for wide scale testing, and we were not, and our tests were faulty, and we failed to use the German tests, which were reliable and already in use across the world.
Panic is the worst possible response; caution and patience and good hygiene are what are needed. Yes, there is a lot that is unknown; no, we cannot stick our heads in the sand; nor should we run about like chickens with our heads cut off. Let’s listen to the public health professionals; let’s tune out the professional media agitators.
The spread in Italy and now Europe is concerning, as is the spread in Iran and portions of the Middle East. Lots of places, we have no or limited ability to do coronavirus testing. We don’t know if it has now spread into refugee camps or into war torn Syria, Yemen or Afghanistan. So far South America, Central America and much of Africa has not reported much impact; that could change. We are just beginning to feel a tiny bit of the impact here in the States, but the very lethal impact on a nursing home’s residents in Washington state is a harbinger of the virus’ potential impacts on the very elderly.
This is the time for medical science, for good public health, for truth telling, for listening to the real experts, and for excellent personal hygiene. Tune out the doomsayers, the deniers, the conspiracy addicts, the panic mongers and the would be profiteers.
Prepared by: Lucien Wulsin
Dated: 3/5/20