- Powell Said the Impact of the Delta Variant on the Economy Remains Unclear
- U.S. Retail Sales Fell in July by More than Forecast
- New Zealand Locks Down
Powell Said the Impact of the Delta Variant on the Economy Remains Unclear
Speaking at a video conference event, Powell stated that he believes students who have to deal with the COVID-19 pandemic will be an “extraordinary generation”, saying that they will see the world differently, that they have a harder time thinking about what really matters in life than most people.
Powell stated that the epidemic has changed the economy significantly and only time will show how permanent these changes will be. “I think we know we won’t be going back to our pre-pandemic economy, but it will take time to see exactly what the changes will be,” Fed Chairman Powell said.
Stating that the Fed should monitor the economy carefully as it continues to overcome the epidemic, Powell stated that they should try to understand how the economy has changed and its effects on the bank’s policy.
Pointing out that the rate of vaccination has slowed, Powell said, “COVID-19 is still among us and it looks like it will continue to be so for a while.” he said.
Stating that no victory can be declared in the COVID-19 epidemic yet, Powell said, “The COVID-19 epidemic still casts a shadow on economic activity.” used the phrase.
U.S. Retail Sales Fell in July by More than Forecast
Retail sales in the United States declined more than expected in July, indicating that consumers are becoming more price-sensitive as inflation rises and reflecting a continuing shift in spending toward services.
Following an upwardly revised 0.7 percent increase in June, the value of overall retail.
Purchases fell 1.1 percent last month according to Commerce Department figures. In a Bloomberg study, the economists called for a 0.3 percent drop.
According to research released last week by the University of Michigan, buying conditions have deteriorated to their lowest level since April of last year, despite the fact that inflation has remained high. Price adjustments are not factored into the retail sales data.
Consumer spending growth slowed in the third quarter, according to data released Tuesday. Economists expect outlays to expand at an annualized 4.5 percent in the current quarter, which is much slower than the pace expected a month ago and a major slowdown from the blistering 11.8 percent rate witnessed in the second quarter.
Following the release of the study, stock prices plummeted. Separate data released Tuesday showed that factory output in the United States increased more than expected in July, which traders digested.
New Zealand Locks Down
After a single case of community-spread COVID-19 was verified in Auckland, New Zealand’s largest city, Prime Minister Jacinda Ardern declared a three-day lockdown. Ardern said at a press conference that genetic testing will determine whether the case was caused by the extremely contagious delta version of the coronavirus. She said Auckland and the Coromandel will be shut down for seven days, while the rest of the country would be shut down for three days.
“Delta has been called a game-changer, and it is,” Ardern told reporters. “It means we need to again go hard and early to stop this spread. We have seen what can happen elsewhere if we fail to get on top of it. We only get one chance.”
If confirmed, New Zealand would be one of the world’s last countries to see the variation appear.
Schools, offices, and all companies will be closed under New Zealand’s Level 4 lockdown laws, with only vital services remaining operating. In March, the nation’s last stay-at-home directives were removed.
New Zealand was among the best at containing the virus. New Zealand’s success is owed in large part to the country’s decision to close its borders to non-residents over the last 18 months.
