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- Federal Reserve chairman Jerome Powell gave a rare exclusive interview with the "TODAY "show Thursday.
- He discussed the unprecedented impact of the coronavirus pandemic on the US economy.
- "We may be in recession," said Powell. "But I would point out the difference between this and a normal recession," he added.
- Read more about Business Insider.
In a rare live interview on Thursday, Fed chairman Jerome Powell said the coronavirus pandemic may have already driven the US economy into recession.
"We may be in recession," Powell told Savannah Guthrie "TODAY" show Thursday morning. "But I would point out the difference between this and a normal recession," he added.
The difference between the two, according to Powell, is how the US economy works.
"There is nothing fundamentally wrong with our economy," he said. "On the contrary. We assume a very strong position."
However, the coronavirus pandemic has presented a unique situation, Powell said.
"I think people need to understand that this is not a typical downturn," he said. "People are asked to close their business, stay home from work, and not engage in certain economic activities, and are withdrawing."
However, this is likely to change once the US is on the other side of the pandemic. "At some point we will get the virus under control and confidence will return," Powell said.
To do its part, the Federal Reserve has taken unprecedented measures to strengthen the U.S. economy and smooth out the markets during the outbreak. The Fed lowered interest rates to near zerobrought trillions into the financial system and introduced unlimited bond purchases and a range of facilities to support local governments and businesses this week.
The government also makes its contribution. The Senate passed one on Wednesday massive $ 2 trillion stimulus package These include aid to industries most affected by the coronavirus pandemic, payments to millions of Americans, and the expansion of unemployment benefits.
(tagsToTranslate) Federal Reserve (t) Federal Reserve Chairman Jerome Powell (t) Jerome Powell (t) Today Show (t) Coronavirus (t) Coronavirus Pandemic (t) Markets and Economy (t) United States. Economy (t) US recession (t) Recession (t) Recession 2020 (t) US recession