Yellen and Bernanke warn: economic recovery could be slow and unbalanced

Former Fed Chairs Ben Bernanke and Janet Yellen warn that economic recovery in the U.S. could be slow and unbalanced. They challenged lawmakers to push legislation in response to coronavirus pandemic. 


Former Fed Chairs suggest that the Congress comes up with a plan on health system strengthening and investing more financial means into development of vaccine against the SARS-CoV-2. In doing so, they hope that schools and stores could soon re-open. According to Yellen and Bernanke, investing into health system brings high return and helps support the economic growth.

Bernanke and Yellen have challenged lawmakers to extend payments of the $600 weekly unemployment benefits, which are to end in July. Unless the benefits are prolonged, Yellen talks about a disaster. Households with low incomes would face uncertainties, which would weaken whole the economy as consumer expenses ratio remains above 65% in the long term. Moreover, both former Fed chiefs called on the Congress to approve additional financial means for budgets of each countries of the U.S., whose tax incomes plunged due to the pandemic. 


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