How to fight a coronavirus recession

The economy looks set to take a major hit. But there are steps the government can take to cushion the blow.

Coronavirus and money.
(Image credit: Illustrated | Bulgnn/iStock, MagicVectorCreation/iStock, -slav-/iStock)

At this point, the spreading COVID-19 coronavirus is not just a clear and present danger to American lives, but to our economy as well. The major quarantines in China have curtailed both the country's exports of goods and parts, as well as its imports from the U.S. and the rest of the world. Other outbreaks of the virus are popping up around the globe, and U.S. officials are saying it's all but certain to spread domestically as well. Indeed, with shocks still rippling through supply chains, we likely don't even know the full scope of the disruptions that are already baked in, much less the possible worst-case scenarios to come.

But there are steps the U.S. government could take to protect the American economy from a recession, if they move as quickly as possible. Specifically, the Federal Reserve should cut interest rates, and Congress and President Trump should put together a fiscal stimulus package to support the economy going forward.

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