Over the next few weeks, U.S. data flow will capture the impact of the supply, demand and financial shocks that are cascading throughout the economy. Policymakers should anticipate a wave of layoffs reflecting the stunning downturn in the economy. The most important of the data is the evolution of ... READ MORE >
coronavirus
Revising growth lower: A reset is coming for the U.S. economy
The American economy is simultaneously absorbing three distinct shocks, each of which will act as a large drag on economic growth during the current and second quarters of the year. The impact of the coronavirus will cause a disruption to American society that will last well beyond the current crisis and ... READ MORE >
The shock to Canada’s system – unsettling financial conditions and unprecedented monetary response
Stress in Canada’s financial system amid the spread of the coronavirus pandemic has risen to levels unseen since the days prior to the September 2008 meltdown of the global financial system. Canada's system, as measured by the RSM Canada Financial Conditions Index, experienced a blow of more than four ... READ MORE >
As coronavirus spreads, private equity contracts even as it prepares for a rebound
As the U.S. financial system and broader economy swoon from fear of the damage that the coronavirus will leave in its wake, private equity deal flow will soon begin to feel the pinch. Although data for the first quarter of 2020 is not yet complete, indications are that deal flow has slowed based on the ... READ MORE >
Fed and Treasury create Commercial Paper Funding Facility to ease credit stress
The U.S. Treasury on Tuesday granted the Federal Reserve 13(3) authority under Dodd-Frank that permits the central bank to take steps under exigent and unusual circumstances to stabilize financial markets and the economy. The U.S. Treasury stepped forward with a $10 billion backstop to fund a ... READ MORE >
U.S. retail sales declined in February amid coronavirus uncertainty
Consumers pulled back across the board on spending in February as the onset of the coronavirus began to shape household expectations about the economy and society. Top-line sales declined by 0.5% while the control group that feeds into the estimation of gross domestic product was flat on the month. ... READ MORE >
Coronavirus impact on Canadian economy calls for more government action
There is no question COVID-19 will significantly wound the Canadian economy. The big question governments and policymakers have to grapple with is whether the downturn will be short term or longer term in nature. Indeed, the answer to this question will help to guide the appropriate fiscal policy ... READ MORE >
Coronavirus concerns for rural health care
As the coronavirus has continued to spread throughout the United States, its impact has been felt mostly in populated areas like Seattle, New York and Boston. At the same time, states with a more rural demographic -- like Idaho, Alabama and West Virginia – have been spared, with the Centers for Disease ... READ MORE >
The case for social distancing: Reducing economic activity to reduce the spread of coronavirus
The coronavirus pandemic has quickly curtailed global economic activity and caused an international recession. While the virus is perhaps abating in Asia, Europe has become the epicenter of the outbreak with more new cases now being reported there than in China. It is only a matter of time before there is ... READ MORE >
U.S. and global financial conditions imply economies at risk
Global financial conditions continue to flash red as global central banks acted forcefully to address the economic and financial effects of the COVID-19 virus. The Federal Reserve put a punctuation mark on monetary policy on Sunday, dropping the fed funds rate back to the zero lower bound (ZLB), boosting ... READ MORE >