This archive report was first published on 18 May 2020.
May 18, 2020, marked a critical moment in the US economy, with economists and policymakers racing to find solutions to the impending recession. The American economy was on the verge of a downturn, and the government was facing a significant financial shortfall.
Jerome H. Powell, the Federal Reserve chair, had urged Congress to spend more on economic relief, even if it meant increasing the federal deficit. He warned that the US was experiencing an economic hit 'without modern precedent.'
As the nation grappled with the economic fallout of the pandemic, policymakers were left with two major questions: how much should be borrowed for bailouts, and what spending was needed to avoid permanent economic damage?
