US ECONOMICS

MONETARY POLICY

FED. June 12, 2020. Monetary Policy Report

The Federal Reserve Act requires the Federal Reserve Board to submit written reports to Congress containing discussions of "the conduct of monetary policy and economic developments and prospects for the future." This report⁠—called the Monetary Policy Report⁠—is submitted semiannually to the Senate Committee on Banking, Housing, and Urban Affairs and to the House Committee on Financial Services, along with testimony from the Federal Reserve Board Chair.

Summary

Monetary Policy Report submitted to the Congress on February 7, 2020, pursuant to section 2B of the Federal Reserve Act

The U.S. economy continued to grow moderately last year and the labor market strengthened further. With these gains, the current expansion entered its 11th year, becoming the longest on record. However, inflation was below the Federal Open Market Committee's (FOMC) longer-run objective of 2 percent. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the FOMC lowered the target range for the federal funds rate at its July, September, and October meetings, bringing it to the current range of 1-1/2 to 1-3/4 percent. In the Committee's subsequent meetings, it judged that the prevailing stance of monetary policy was appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective.

Economic and Financial Developments

The labor market. The labor market continued to strengthen last year. Payroll employment growth remained solid in the second half of 2019, and while the pace of job gains during the year as a whole was somewhat slower than in 2018, it was faster than what is needed to provide jobs for new entrants to the labor force. The unemployment rate moved down from 3.9 percent at the end of 2018 to 3.5 percent in December, and the labor force participation rate increased. Meanwhile, wage gains remained moderate although above the pace of gains seen earlier in the expansion.

Inflation. After having been close to the FOMC's objective of 2 percent in 2018, consumer price inflation, as measured by the price index for personal consumption expenditures, moved back below 2 percent last year, where it has been during most of the current expansion. The 12-month change was 1.6 percent in December 2019, as was the 12-month measure that excludes consumer food and energy prices (so-called core inflation), which historically has been a better indicator of where inflation will be in the future than the overall figure. The downshift relative to 2018 partly results from particularly low readings in the monthly price data in the early part of last year that appear to reflect transitory influences. Survey-based measures of longer-run inflation expectations have been broadly stable since the middle of last year, and market-based measures of inflation compensation are little changed on net.

Economic growth. Real gross domestic product (GDP) is reported to have increased at a moderate rate in the second half of 2019, although growth was somewhat slower than in the first half of the year and in 2018. Consumer spending rose at a moderate pace, on average, and residential investment turned up after having declined in 2018 and the first half of 2019. In contrast, business fixed investment declined in the second half of last year, reflecting a number of factors that likely include trade policy uncertainty and weak global growth. Downside risks to the U.S. outlook seem to have receded in the latter part of the year, as the conflicts over trade policy diminished somewhat, economic growth abroad showed signs of stabilizing, and financial conditions eased. More recently, possible spillovers from the effects of the coronavirus in China have presented a new risk to the outlook.

Financial conditions. Domestic financial conditions for businesses and households remained supportive of spending and economic activity. After showing some volatility over the summer, nominal Treasury yields declined and equity prices increased notably, on balance, supported by accommodative monetary policy actions and easing of investors' concerns regarding trade policy prospects and the global economic outlook. Spreads of yields on corporate bonds over those on comparable-maturity Treasury securities continued to narrow, and mortgage rates remained low. Moreover, loans remained widely available for most businesses and households, and credit provided by commercial banks continued to expand at a moderate pace.

Financial stability. The U.S. financial system is substantially more resilient than it was before the financial crisis. Leverage in the financial sector appears low relative to historical norms. Total household debt has grown at a slower pace than economic activity over the past decade, in part reflecting that mortgage credit has remained tight for borrowers with low credit scores, undocumented income, or high debt-to-income ratios. In contrast, the levels of business debt continue to be elevated compared with the levels of either business assets or GDP, with the riskiest firms accounting for most of the increase in debt in recent years. While overall liquidity and maturity mismatches and funding risks in the financial system remain low, the volatility in repurchase agreement (repo) markets in mid-September 2019 highlighted the possibility for frictions in repo markets to spill over to other markets. Finally, asset valuations are elevated and have risen since July 2019, as investor risk appetite appears to have increased. (See the box "Developments Related to Financial Stability" in Part 1.)

International developments. After weakening in 2018, foreign economic growth slowed further in 2019, held down by a slump in global manufacturing, elevated trade tensions, and political and social unrest in several countries. Growth in Asian economies slowed markedly, especially in Hong Kong and India, and many Latin American economies continued to underperform. The pace of economic activity weakened in several advanced foreign economies as well. However, recent indicators provide tentative signs of stabilization. The global slowdown in manufacturing and trade appears to be nearing an end, and consumer spending and services activity around the world continue to hold up. Moreover, in some economically important regions, such as China and the euro area, data through early this year suggested that growth was steadying. The recent emergence of the coronavirus, however, could lead to disruptions in China that spill over to the rest of the global economy. Amid weak economic activity and dormant inflation pressures, foreign central banks generally adopted a more accommodative policy stance.

Financial conditions abroad eased in the second half of last year, supported by accommodative actions by central banks and, later in the period, positive political developments, including progress on the U.S.–China trade negotiations and diminished risks of a disorderly Brexit. On balance, since July global equity prices moved higher, sovereign bond spreads in the European periphery narrowed, and measures of sovereign spreads in emerging market economies decreased somewhat. In many advanced foreign economies, long-term interest rates remained well below the levels seen at the end of 2018.

Monetary Policy

Interest rate policy. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the FOMC lowered the target range for the federal funds rate over the second half of 2019. Specifically, at its July, September, and October meetings, the FOMC lowered the target range a cumulative 75 basis points, bringing it to the current range of 1-1/2 to 1-3/4 percent. In its subsequent meetings, the Committee judged that the prevailing stance of monetary policy was appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective. The Committee noted that it will continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate.

Balance sheet policy. At its July meeting, the FOMC decided to conclude the reduction of its aggregate securities holdings in the System Open Market Account, or SOMA, in August. Ending the runoff earlier than initially planned was seen as having only very small effects on the balance sheet, with negligible implications for the economic outlook; it was also seen as helpful in simplifying communications regarding the use of the Committee's policy tools at a time when the Committee was lowering the target range for the federal funds rate. As discussed further in the next paragraph, since October 2019, the size of the balance sheet has been expanding to provide an ample level of reserves to ensure that the federal funds rate trades within the FOMC's target range.

Monetary policy implementation. Domestic short-term funding markets were volatile in mid-September—amid large flows related to corporate tax payments and settlement of Treasury securities—and experienced a significant tightening of conditions. Since then, the Federal Reserve has been conducting open market operations—repo operations and Treasury bill purchases—in order to maintain ample reserve balances over time. While the balance sheet has expanded in light of the open market operations to maintain ample reserves, these operations are purely technical measures to support the effective implementation of the FOMC's monetary policy, are not intended to change the stance of monetary policy, and reflect the Committee's intention to implement monetary policy in a regime with an ample supply of reserves. The Committee will continue to monitor money market developments as it assesses the level of reserves most consistent with efficient and effective policy implementation and stands ready to adjust the details of its technical operations as necessary to foster efficient and effective implementation of monetary policy. (See the box "Money Market Developments and Monetary Policy Implementation" in Part 2.)

Special Topics

Manufacturing and U.S. business cycles. After increasing solidly in 2017 and 2018, manufacturing output turned down last year. This decline raised fears among some observers that the weakness could spread and potentially lead to an economy-wide recession. In general, a decline in manufacturing similar to that in 2019 would not be large enough to initiate a major downturn for the economy. Furthermore, after accounting for changing trends in growth of manufacturing output, mild slowdowns have often occurred during expansionary phases of business cycles. In contrast, a more pronounced contraction in manufacturing has historically been associated with an economy-wide recession. (See the box "Manufacturing and U.S. Business Cycles" in Part 1.)

Monetary policy rules. Prescriptions for the policy interest rate from monetary policy rules often depend on judgments and assumptions about economic variables that are inherently uncertain and may change over time. Notably, many policy rules depend on estimates of resource slack and of the longer-run neutral real interest rate, both of which are not directly observable and are estimated with a high degree of uncertainty. As a result, the amount of policy accommodation that these rules prescribe—and whether that amount is appropriate in light of underlying economic conditions—is also uncertain. Such a situation cautions against mechanically following the prescriptions of any specific rule. (See the box "Monetary Policy Rules and Uncertainty in Monetary Policy Settings" in Part 2.)

Framework review and Fed Listens events. In 2019, the Federal Reserve System began a broad review of the monetary policy strategy, tools, and communication practices it uses to pursue its statutory dual-mandate goals of maximum employment and price stability. The Federal Reserve sees this review as particularly important at this time because the U.S. economy appears to have changed in ways that matter for monetary policy. For example, the neutral level of the policy interest rate appears to have fallen in the United States and abroad, increasing the risk that the effective lower bound on interest rates will constrain central banks from reducing their policy interest rates enough to effectively support economic activity during downturns. The review is considering what monetary policy strategy will best enable the Federal Reserve to meet its dual mandate in the future, whether the existing monetary policy tools are sufficient to achieve and maintain the dual mandate, and how communication about monetary policy can be improved.

A key component of the review has been a series of public Fed Listens events engaging with a broad range of stakeholders in the U.S. economy about how the Federal Reserve can best meet its statutory goals. During 14 Fed Listens events in 2019, policymakers heard from individuals and groups around the country on issues related to the labor market, inflation, interest rates, and the transmission of monetary policy. (See the box "Federal Reserve Review of Monetary Policy Strategy, Tools, and Communication Practices" in Part 2.)

Statement on Longer-Run Goals and Monetary Policy Strategy

Adopted effective January 24, 2012; as amended effective January 29, 2019

The Federal Open Market Committee (FOMC) is firmly committed to fulfilling its statutory mandate from the Congress of promoting maximum employment, stable prices, and moderate long-term interest rates. The Committee seeks to explain its monetary policy decisions to the public as clearly as possible. Such clarity facilitates well-informed decisionmaking by households and businesses, reduces economic and financial uncertainty, increases the effectiveness of monetary policy, and enhances transparency and accountability, which are essential in a democratic society.

Inflation, employment, and long-term interest rates fluctuate over time in response to economic and financial disturbances. Moreover, monetary policy actions tend to influence economic activity and prices with a lag. Therefore, the Committee's policy decisions reflect its longer-run goals, its medium-term outlook, and its assessments of the balance of risks, including risks to the financial system that could impede the attainment of the Committee's goals.

The inflation rate over the longer run is primarily determined by monetary policy, and hence the Committee has the ability to specify a longer-run goal for inflation. The Committee reaffirms its judgment that inflation at the rate of 2 percent, as measured by the annual change in the price index for personal consumption expenditures, is most consistent over the longer run with the Federal Reserve's statutory mandate. The Committee would be concerned if inflation were running persistently above or below this objective. Communicating this symmetric inflation goal clearly to the public helps keep longer-term inflation expectations firmly anchored, thereby fostering price stability and moderate long-term interest rates and enhancing the Committee's ability to promote maximum employment in the face of significant economic disturbances. The maximum level of employment is largely determined by nonmonetary factors that affect the structure and dynamics of the labor market. These factors may change over time and may not be directly measurable. Consequently, it would not be appropriate to specify a fixed goal for employment; rather, the Committee's policy decisions must be informed by assessments of the maximum level of employment, recognizing that such assessments are necessarily uncertain and subject to revision. The Committee considers a wide range of indicators in making these assessments. Information about Committee participants' estimates of the longer-run normal rates of output growth and unemployment is published four times per year in the FOMC's Summary of Economic Projections. For example, in the most recent projections, the median of FOMC participants' estimates of the longer-run normal rate of unemployment was 4.4 percent.

In setting monetary policy, the Committee seeks to mitigate deviations of inflation from its longer-run goal and deviations of employment from the Committee's assessments of its maximum level. These objectives are generally complementary. However, under circumstances in which the Committee judges that the objectives are not complementary, it follows a balanced approach in promoting them, taking into account the magnitude of the deviations and the potentially different time horizons over which employment and inflation are projected to return to levels judged consistent with its mandate.

The Committee intends to reaffirm these principles and to make adjustments as appropriate at its annual organizational meeting each January.

Note: The Committee did not reaffirm this statement in January 2020 in light of its ongoing review of its monetary policy strategy, tools, and communications practices. This statement is a reprint of the statement affirmed in January 2019.

REPORT: https://www.federalreserve.gov/monetarypolicy/2020-02-mpr-summary.htm

CORONAVIRUS

DoC. June 8, 2020. Manufacturing. Remarks by Commerce Secretary Wilbur Ross at the Fibertex Nonwovens Facility in Gray Court, South Carolina. Wilbur Ross, Secretary of Commerce

On June 4, U.S. Secretary of Commerce Wilbur Ross announced that the U.S. Department of Commerce’s International Trade Administration and U.S. & Foreign Commercial Service are temporarily reducing or eliminating the costs of several of their export services, providing relief to U.S. businesses affected by COVID-19.

Also, on June 4, Secretary Ross traveled to Charlotte, North Carolina for roundtable discussions with the North Carolina Restaurant and Lodging Association and the Charlotte Regional Business Alliance to discuss the next steps in the hospitality and tourism industries as they begin to recover from COVID-19.

On June 5, Secretary Ross and South Carolina Governor Henry McMaster toured the Fibertex Nonwovens plant in Gray Court, SC to discuss the impact of COVID-19 on business and industry. Secretary Ross and Governor McMaster participated in a roundtable discussion with Upstate South Carolina Alliance and engaged with Upstate business leaders representing an array of industries.

REMARKS

It is great to be here with all of you and to be on the ground to witness your industrial response to the COVID-19 crisis. It’s also wonderful to be here with Governor McMaster. You have been so instrumental in this state remaining an industrial powerhouse. All Americans are thankful of this state’s continued investment and commitment to textile production.

I am also grateful for the swift action Fibertex and your workforce took to respond to the COVID-19 emergency. So far year-to-date, this high-tech factory has produced 25,000 tons of nonwoven spunlace material for disinfectant wipes. This is no small feat, and I congratulate each of you on what you accomplished here in Gray Court.

Thank you also for providing us with a tour of the second production line, set to open this summer, and for developing the new material Honeywell will use in its lifesaving N95 masks.

The United States has a special appreciation for global enterprises like the Danish Fibertex parent, Schouw and Company, that choose to do business on our shores. Thanks in large part to the President’s pro-growth policies, the United States is home to more foreign direct investment than any other country in the world with a total of $4.34 trillion investment in the United States.  FDI supports more than 7.35 million U.S. jobs, including the 57 here at Fibertex, and FDI is responsible for $383 billion in U.S. goods exports. I am glad the business climate was right in 2019 for Schouw and Company to invest in South Carolina after acquiring its Chicago facility in 2014.

Fibertex represents a model of how government and private sector can work together to respond to needs, drive innovation, and renew this country’s long history of advanced manufacturing. We are committed to increasing FDI in the United States, and with us also is Joe Semsar, the Under Secretary for International Trade at the Commerce Department. Joe is in charge of our SelectUSA program, as well as the trade enforcement programs that are so important to industries competing with countries that do not abide by the global rules of trade. Thank you, Joe, for being here, too.

FOREIGN POLICY

U.S. Department of State. 06/11/2020. Secretary Michael R. Pompeo With Dr. James Dobson of Family Talk with James Dobson. Michael R. Pompeo, Secretary of State. Via Teleconference

QUESTION: Ladies and gentlemen, in my 44 years on the radio I’ve had the opportunity to interview President Ronald Reagan and George Herbert Walker Bush and many other leaders of note, and I am deeply honored today to have as my guest the 70th United States Secretary of State, Mike Pompeo.

He is one of the most qualified individuals to ever serve in this position, and I’m anxious to talk to him. Before having this responsibility, he served as director of the Central Intelligence Agency. He’s a graduate of Harvard Law School and was the editor of the prestigious Harvard Law Review. He’s married to Susan and they have one son, Nick.

Mr. Secretary, I’ve watched you from afar, especially in the last couple of years, and I respect you highly. I’ve been out there cheering for you, and you didn’t even know it.

SECRETARY POMPEO: I could feel the prayer, though.

QUESTION: We are praying for you, and there’s many people around this country who are doing so as well. You are obviously carrying a very heavy load at this time. Thank you so much for joining us today.

SECRETARY POMPEO: It’s wonderful to be with you. I consider it a blessing and I’m looking forward to the conversation a great deal.

QUESTION: I would like to begin with a subject that offers a little good news, and the Lord knows that we need it now. There was a breaking story last Thursday about Iran’s release of Michael White who has been in prison for two years. He’s a Navy veteran and he’s either on his way home or he’s there now. Give us the backstory on that release.

SECRETARY POMPEO: It is fantastic news. It’s something that we have been working on for quite some time. Michael White is a Navy veteran. He’d been held for now two years on by the Islamic Republic of Iran, and in the last 24 hours he was released. He’s on his way home. It’ll take a little bit yet to get him back to the United States, but he is out of control of the Islamic Republic of Iran. This is a great thing for him and for his family. And our team, led by a fellow named Brian Hook, did remarkable work to secure his release from Iran.

We still, sadly, have others who are held there, and the American people should know that the State Department team and President Trump are focused on securing the release for every American that is wrongfully detained. And we hope the Iranians – and we pray that the Iranians – will make the right decision to let these people who did nothing wrong but are being held unjustly and allow them to return home to their lives and to their families.

QUESTION: What were the charges against Michael White?

SECRETARY POMPEO: So there were a number of charges through time that they had raised, and in each case, much like we see with the so-called justice system there in Iran, they continued to delay and obfuscate what had really taken place, because the Iranians knew the truth: He was an innocent man and remains so. They charged him with things that relate to espionage and others, and this is the nature of what this regime has done. And we hope all nations will join us in calling for every country that holds people on these kinds of false charges and allow these people to come back home.

QUESTION: Is there an easy answer to how many Americans they’re holding now?

SECRETARY POMPEO: There is. It’s a handful that are left there. We’ve been very fortunate. We’ve had others come home before Michael White as well, so we’ve been relatively successful, but we’ve also been very clear we don’t pay for the return of our hostages. And so it is hard diplomatic work to convince the Iranians that it’s the right thing to do. And we are very focused on getting those who are remaining – the handful that the Iranians are still holding – getting them back as quickly as we can.

QUESTION: Well, there’s so many problems in the world that come to your desk. What role does your responsibility there play in terms of dealing with international affairs? Describe your task as Secretary of State.

SECRETARY POMPEO: My primary mission is to provide President Trump with the best wisdom about how to secure America, to keep Americans safe, to defend religious freedom all across the world and here in the United States, and deliver him the best wisdom about the courses of action that we should take, and then in turn take his guidance about how we’ll deal with complex problems, whether that’s working against the Chinese Communist Party or working with the problem sets we find in the Middle East, in Iran, in Venezuela – taking the guidance that he provides to us and then taking my team of some 70,000 scattered all across the globe and helping deliver diplomatic outcomes; to get good outcomes for the American people in a way that doesn’t put American sailors, soldiers, airmen, Marines in harm’s way; to use diplomacy to get good outcomes for America so that we can grow our economy and keep the American people safe.

That’s my mission every day. It is a daunting task, but I work for a president who is very focused on making sure that our international diplomacy is very focused on protecting Americans and the American way of life.

QUESTION: You know I’ve watched you, as I said, from afar, and it looks to me like you spend a good part of your life in the air. Isn’t that an exhausting responsibility?

SECRETARY POMPEO: It is. I spend a lot of time on the road. Perhaps the only good thing for me that came from this virus, that is so nasty and has caused so much death and destruction, is I’ve spent a little less time on an airplane these past few weeks. But I’m anxious to get back out. You know this. The only way to truly engage successfully often is to be sitting in a room with someone, to be straight in front of them, to break bread with them, and have a serious discussion about how we can move forward. And so a big part of my role is to travel around the world to achieve American ends, and I’m looking forward to heading back out before too long.

QUESTION: Well, there’s so many things that we could talk to you about. Before we went on the air, I prayed about this program, and you joined me in that prayer. You have a very strong commitment to Jesus Christ, don’t you?

SECRETARY POMPEO: I do. I have known since I was a young man that Jesus Christ was my savior. And I talk about that a lot in my role as Secretary of State. I think it’s important that people know who I am and the way my world view is informed from my faith. My wife and I taught fifth grade Sunday school for a bunch of years before I came back to Washington when I ran for Congress from Kansas. We miss that, because it was a chance to take those young people and share the word of Jesus Christ through the Bible with them as well.

And so it’s a part of what I do here. We have focused on religious freedom, not just for Christians but for people of Jewish faith, Muslims, all faiths, to make sure that every human being has the capacity and the will and a government who will permit them to exercise their conscience, their rights; and then secondly to make sure that people understand that here in America our rights are, in fact, God-given. They didn’t come from any government who gave them to us. We – they were bestowed upon us by God, and it is the government’s role to make sure that those God-given rights are protected.

QUESTION: I wish that every committed Christian out there knew how many initiatives, how many decisions, how many executive orders the President issues every two or three days in defense of religious liberty. I get them on a regular release, and it’s just amazing how committed to that issue he is.

SECRETARY POMPEO: Yeah. It’s a big part of what the President has asked us to do. We have an ambassador-at-large named Sam Brownback, former governor of Kansas, who I’ve known for many, many years, who we brought on board to lead that effort. But we know this – this first freedom, this capacity to worship in the way you want and to exercise your faith in the way you want, it’s good for governments when people can do that. People – when they’re denied that freedom, people are restless, and rightly so. And so we have gone around the world telling the story about why religious freedom is good for those nations above and beyond why it’s the right thing for human being to have the capacity to express that.

The President feels that. He sees it. He directs us to go do it. Just last week, he issued another executive order, which is going to help us use foreign assistance in a way that’s consistent with that objective. It has been a real priority. We’ve had these great ministerials where we bring people from all across the world, the biggest diplomatic engagement ever held at the State Department, now a year and a half ago. Really neat stuff where people from many, many religions came to Washington, came to the State Department to talk about how we would protect religious rights for people in minority religions all across the world.

QUESTION: How rare is it for foreign countries and policies to support religious liberty? Is this really a rarity in human affairs?

SECRETARY POMPEO: Sadly, it is. Too few people enjoy what I think sometimes Americans take for granted – our capacity to worship and practice our faith. I’ve seen the numbers. Some two-thirds of the people across the world live in countries with reduced capacity to exercise their religious freedom. It just makes that mission all that much more important for us to encourage leaders across the world to understand why it’s the right thing to do, why these fundamental rights are so important to grant to their people.

QUESTION: Yeah. You were interviewed on Fox News – I happened to be watching; this was last week – and you were talking about China and the threat it poses to the country. Why should we be concerned about a nation on the other side of the globe?

SECRETARY POMPEO: So Jim, you and I have been around a while, and we have seen what governments that deny religious freedom – what communist, authoritarian regimes do, not only to their people – that’s bad – but the risk that it poses to the United States of America and Americans is very real as well. You could see it in the – up close and personal in the context of the virus that began in a place called Wuhan, China. And you’d think, goodness gracious, where’s Wuhan? Why does that matter to me? Well, it turns out that from Wuhan, China the Chinese Communist Party permitted people to travel. They traveled to New York. They traveled to Milan. And now hundreds of thousands of people across the globe are dead.

And so as much as we might like to think boy, we – we’ll just – they can do their thing and we’ll do ours, the actions that these regimes take and the behavior of the Chinese Communist Party in the time of the pandemic, where they couldn’t tell the truth. They couldn’t share with the world what happened. Those things have a real-world impact all across – all this long way from China. That’s one example why we need to do everything we can to make sure that we’re doing all the right actions, not for the benefit of anyone save for the American people.

QUESTION: Does the Chinese Government, the communist government there, really intend to establish world dominance, militarily and otherwise? Do they really have us in their crosshairs?

SECRETARY POMPEO: I don’t think there’s any doubt that the Chinese Communist Party believes that they now have a very powerful military. They have 1.4 billion people, and they are beginning to move into places like Africa, and they’re running influence operations here even in our United States, with the effort to undermine the democratic values, the freedom-loving values that places like the United States and places like Europe have.

And so if you ask me the question, does the Chinese Communist Party have every intention of taking away those central ideas that our founding fathers bestowed upon us, I think the answer is almost certainly yes. And we have an obligation to convince them that it is not in their best interest to do that, and second, that it will not be something that will go unnoticed and that the United States – President Trump has been very strong – the United States will respond. We are going to make sure that no nation ever undermines the central nature of the American experiment.

QUESTION: Well, I trust that there will always be an administration that understands that, because in one term they could do tremendous damage to the United States and to other freedom-loving people around the world. Tell us what’s going on in Hong Kong now. What’s the – what are the Chinese trying to do there?

SECRETARY POMPEO: This is yet one more example of the Chinese Communist Party denying basic freedoms. In this case it was to the people of Hong Kong, where they had made a promise for 50 years they would allow Hong Kong to operate in an autonomous way. And frankly, over the last decade, we allowed them to continue to erode those freedoms, and President Trump has made a decision we’re no longer going to tolerate that; it reached a point where it was no longer something we could look the other way from.

And so we are now going to work diplomatically to convince the Chinese Communist Party to reverse course, and in the likely event that they don’t choose that we’re going to respond in the way the President laid out to impose real cost for this decision where just the basic freedom, the freedom to live your life, to speak and assemble and all the things we take for granted, are being denied to the people of Hong Kong in violation of the very commitment that they made to those very same people.

QUESTION: Well, the people of Hong Kong know what freedom is and what it isn’t, don’t they? They are largely supportive of our nation and what we stand for.

SECRETARY POMPEO: They do. Look, they do, Jim. They’ve come to understand that their success – not just their economic success of which there’s been a great deal but their success, their capacity to live their lives in the way they wanted and to raise their families they want – depended on having that freedom. And now they see it taken away, and they are turning to the world to ask us to do what we can to preserve that, and President Trump is committed to doing what we can.

QUESTION: You mentioned the virus, the COVID-19 virus, a minute ago. We know what it’s doing to America. What has been its impact around the world? You’re there, you see it. I think of the virus mainly in terms of what it’s done to America, but there must be people who are starving to death, people who are sick and don’t have access to medical care. There must be tragedies around the world as a result of this.

SECRETARY POMPEO: Yes, sir, it’s absolutely the case. There are no human beings who live in regions that haven’t been impacted by this. We’re blessed. We have wonderful medical systems here in the United States, as challenged as we have been. Many of these countries don’t have that kind of health care infrastructure, and so they’ve been impacted even to a greater degree than we have. And some of these countries, they’re further out so the virus is just beginning to impact them. That ranges from places in difficult parts of Africa to Central Asia. Moscow has had a terrible time with it as well.

The destruction that it has wrought on human lives and on human health and on economies, which will have real-life implications as well for people’s health and well-being, are truly of historic importance. And so our mission here has been to do two things. One, to make sure we do everything we can to protect the lives of American people and keep them healthy; and now to go build our economy back out, which will benefit all of these people across the world.

When you see this virus hit countries like Ethiopia and Bangladesh and countries that were already under enormous economic pain that don’t have the resources that the United States and other Western countries have, you know that this virus will be devastating. And I am hopeful that the Chinese will see that this was something that they could well have reduced the risk from and that they will be part of the solution as well. We’re counting on a global team to go develop a vaccine and therapeutics, and then ultimately to help build back these economies all around the world so death and starvation that may flow from this virus will be diminished.

QUESTION: Do you think China was just negligent in the way that they dealt with the virus after they knew about it, or was it intentional?

SECRETARY POMPEO: There are still so many unanswered questions. When you see a nation – and this is what authoritarian regimes do. When they have a crisis, they close up. They refuse to share information. They kick journalists out. They disappear doctors or journalists. When you see authoritarian regimes behave in that way, there is real risk that there was something that they knew.

We know that early in January or the end of December they came to understand the risk that was presented to them, and then they, along with the World Health Organization, didn’t get the information to the right places so that the globe could respond, the whole world could respond in a way that was sufficiently timely.

QUESTION: They wouldn’t even allow our scientists to come inspect the circumstances, did they?

SECRETARY POMPEO: No, that’s right, and indeed they still have not. We still have – I mean, here we sit today – we still have unanswered questions about how this began, who patient zero was, the very first patient that was impacted, and how this virus went from Wuhan in a single individual to the global pandemic we have today. We still haven’t had our scientists in. We’re still asking the Chinese Government to permit that. We hope that they will. We need the world’s best scientists to understand the history of this so that we can prevent something like this from ever happening again.

QUESTION: Do you think we’re getting a handle on it here in this country and maybe other places, or is the worst yet to come?

SECRETARY POMPEO: No, I think we understand it a great deal better than we did just a couple weeks back and even a few weeks before that. We know more; we know how to respond to it more. Our best doctors and epidemiologists and scientists and pharmaceutical companies are working 24 hours a day, seven days a week to develop both therapeutics and a vaccine. I am praying that they will get each of those just as quickly as they possibly can. But even here, even here in the United States we can see that we’re learning how to respond to this in ways and we’re learning how to manage this process forward. And now, as the President has said, it’s very important we get the economy going back again.

QUESTION: Well, we’re talking to Secretary of State Mike Pompeo, and there’s so many questions I want to ask you. Let me ask you a rather complicated question and one that’s been on my mind. I hope that our listeners will follow this. But I’ve said many times that change occurs in a crisis, and when people are frightened or hungry or they’re unemployed, they often become sitting ducks for tyranny.

When given a choice – this is a – I’m not sure this is original with me. It probably isn’t, but I believe it. When given a choice between chaos and tyranny, people will nearly always choose a dictatorship because it presents itself as being more predictable. I’m sorry this is a lengthy question, but World War II resulted in part from the economic depression that swept Europe and other continents in the 1930s. Six million Germans were out of work, and inflation completely destroyed their economy. Money was worth nothing. Adolph Hitler came along and presented himself as the only one who could bring stability to Germany, and they followed him, and instead he brough destruction and 50 million deaths. So once again, the nations of the world are in crisis. Does that instability concern you at this time?

SECRETARY POMPEO: It does, and your point, which is that the risk that someone in a crisis or in chaos will sell their soul for a farthing, right, will accept the jack-booted thugs that come on and create a system, a government system that denies them their basic freedoms in exchange for some promise of a little bit of certainty and some economic capability, that risk is real. We see that in places around the world. But I – I must say, as a man of faith, I think that the soul is stronger than that and that God is watching what’s taking place today. And we saw that, too – on the flip side of World War II – we saw in other places around the world, we saw people say we’re just not going to do that. Our freedoms are too important. We’re going to go fight for them.

Where we said we’re going to go restore certainty and freedom and democracy, and we’re willing to risk our lives to do that, at great economic cost and at great risk to their own lives. We have seen other places where humanity rises up and demands it. And I am confident that in this time, this challenging time all across the globe, and the challenges that we have in the – here in the United States as well, that the good people of the United States will recognize that it is worth fighting for, that this desire to maintain our democracy and our freedom is real, and we’ll continue to work to make sure that – certain that we continue to have this here at home as we have for these past years, and all around the world as well.

QUESTION: Well, I know a lot of people are trying to get to you, trying to interview you, and I appreciate you giving us this time. It’s almost gone. Is there anything you would like to say to the people of this great land?

SECRETARY POMPEO: Only that I’ve now had this privilege to serve for a year and a half as the director of the Central Intelligence Agency, and now just over two years as America’s Secretary of State, and I’ve had the chance to go out and watch the world. And the people of the United States should know that the world looks to us as a beacon. They know that this is a special place. They know that God gave us this set of rights and our founders set this course in motion for this great experiment, and they should know that they can be very proud that as I travel around the world, people want to see me, America’s Secretary of State. They want to come to know me. They want to come seek our assistance, seek our help. And most of all, know that they understand that America will continue to lead and do the right things that preserve the freedoms for our people, and that we are indeed a generous nation that can help them as well.

QUESTION: Well, tell our friends out there, especially those who have a deep Christian faith, how they can pray for you and pray for our President.

SECRETARY POMPEO: Well, pray for both of us, for – as you did before we came on the air – for the continued strength and wisdom. These are difficult jobs for sure. It is a complex world that requires consistent returning to one’s faith and that we would keep that and look to Him for our guidance, and that we would continue to work to understand how much America means to the world and how much good we can do for our own people when we are out there working on their behalf.

QUESTION: Well, I often come to Washington. If you’re not off in North Korea or someplace when I come through there, I’d love to say hello, shake your hand, maybe give you a hug. Is that okay?

SECRETARY POMPEO: I would welcome all of that, and a prayer alongside of it would be fantastic.

QUESTION: Thanks for giving us this time today.

SECRETARY POMPEO: Thank you. So long.

CUBA

U.S. Department of State. 06/12/2020José Daniel Ferrer Receives the Truman-Reagan Medal of Freedom Award. Michael R. Pompeo, Secretary of State

Human rights defender José Daniel Ferrer has spent most of his adult life imprisoned for trying to make Cuba a free nation.  Ferrer has worked tirelessly to ensure all Cubans have a voice in the affairs of their own country.  The Castro regime has responded by beating and torturing Ferrer, harassing and threatening his family and colleagues, and imprisoning him simply for demanding a better life for Cubans.  Despite these abuses, Ferrer has persisted.

It is this persistence, this courage in the face of physical danger, and this resolve to help Cubans who yearn to be free that has earned José Daniel Ferrer the prestigious Truman-Reagan Medal of Freedom Award.  The United States government joins in the chorus of international voices that praise and commend Ferrer’s work, and the brave work of Cuban citizens on the island and abroad whose sole mission is to demand a free and fair government that encourages its people to thrive, instead of a dictatorship that jails them for their dissenting opinions.

This is a particularly powerful moment for human rights around the world and in our country.  We recognize the significance of the moment and emphasize the importance of fighting for human rights and fundamental freedoms.  We have more work to do, and Americans are fulfilling their right and responsibility to demand a more perfect union. Until the Cuban people can enjoy the freedoms and rights they are entitled to, the United States government will never stop holding the Cuban government accountable for its abhorrent actions against its own people.

We urge the Cuban government to take an important first step in this effort by immediately releasing José Daniel Ferrer from his four-and-a-half-year house arrest sentence, and immediately freeing all political prisoners.  These prisoners are simply demanding a better government.  They should be honored for their efforts as Ferrer is rightly being honored today.

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ECONOMIA BRASILEIRA / BRAZIL ECONOMICS

MERCADO DE TRABALHO

FGV. IBRE. 12/06/2020. Indicadores trimestrais de produtividade – 1º trimestre de 2020
Fernando Veloso, Silvia Matos e Paulo Peruchetti

Indicadores de produtividade trimestral (por pessoal ocupado e por hora trabalhada).

DOCUMENTO: https://ibre.fgv.br/observatorio-produtividade/temas/indicadores-trimestrais-de-produtividade-1o-trimestre-de-2020

INDÚSTRIA

REUTERS. 12 DE JUNHO DE 2020. ENFOQUE-Empresas no Brasil retomam produção em alerta máximo contra Covid-19
Por Aluisio Alves

SÃO PAULO (Reuters) - O Brasil ainda segue registrando números elevados de casos e mortes de Covid-19, mas aos poucos grandes empresas de diversos setores da economia no país estão retomando gradualmente as operações, adotando para isso novos protocolos que estão se fazendo sentir na produtividade, mas que são o custo cobrado para que as pessoas se sintam seguras para voltar à atividade.

Trabalhadores de grandes empresas industriais e também de varejo e serviços, autorizadas por governos regionais a retomarem operações, estão adotando medição frequente de temperatura corporal, uso obrigatório permanente de máscaras de proteção e circulação monitorada com rigor.

Na fabricante de carrocerias Marcopolo, a vigilância supera o horário de expediente. Os ônibus que levam funcionários para o trabalho, que agora operam com metade da capacidade, chegam de forma escalonada para evitar aglomeração. Catracas na entrada da principal fábrica da empresa em Caxias(RS) foram espaçadas. As refeições passaram a ter menor manipulação manual. Máquinas de suco e café foram desligadas.

“Dentro da empresa colocamos câmeras para evitar aglomeração em qualquer espaço da empresa, inclusive nas áreas de lazer e no refeitório”, disse à Reuters o diretor do Negócio Ônibus da Marcopolo, Rodrigo Pikussa.

Embora a retomada parcial das operações em abril tenha sido facilitada pelo fato de a cidade de Caxias, que abriga a maior fábrica da empresa, ter tido poucos casos da Covid-19, a companhia decidiu aplicar lá as mesmas regras de suas demais unidades no exterior, inclusive na China, onde a pandemia teve origem.

Todos os novos cuidados atingem a produtividade, mas as empresas, pelo menos do setor de veículos em que a Marcopolo está inserida, considerem a segurança como fundamental para devolver confiança à indústria e ao mercado. Segundo a associação que representa o setor, sete fábricas de veículos voltaram a operar em maio no país, e o restante programa retornos ao longo de junho.

“A produtividade não está a mesma, em parte por causa das medidas de prevenção contra a Covid-19”, disse este mês o presidente da associação de montadoras, Anfavea, Luiz Carlos Moraes, a jornalistas. “Mas estamos voltando à produção das fábricas com protocolos de saúde com referência em padrões internacionais, aprendidos por nossas empresas em países como China e Alemanha”, disse.

Mas mesmo com esses e outros cuidados, como equipe médica de plantão permanente, na maioria dos casos esse aparato não é o bastante para garantir uma distância segura entre as pessoas, o que faz empresas operarem com apenas parte do efetivo e também restringirem ao máximo a entrada de visitantes.

Essa é uma realidade tanto na Marcopolo quanto na fabricante de implementos rodoviários Randon, que voltou com metade dos 8 mil empregados, ainda assim com revezamento de turnos. Depois, ampliou a equipe, mas com jornadas menores. “Também estamos providenciando milhares de testes rápidos para a Covid-19”, disse o diretor da Randon Daniel Ely. “Alguns funcionários se sentem mais seguros dentro da empresa do que fora.”

NOVA ERA, NOVO MERCADO

Essa busca por confiança no ambiente de trabalho tem incentivado empresas do setor de saúde a explorarem um novo filão de mercado. A companhia de medicina diagnóstica Fleury, um dos maiores laboratórios de análises clínicas do país, criou recentemente serviço específico para atender empresas que estão em fase de retomada dos negócios pós-Covid, incluindo testes e protocolos de segurança.

“É um conjunto de medidas para dar maior segurança para empresas, especialmente as que lidam com o público, e ao mesmo tempo racionalizar esforços e despesas”, disse Jeane Tsutsui, diretora-executiva de negócios do Fleury, que já presta o serviço para Bradesco e a administradora de shopping centers Iguatemi.

Segundo especialistas, muitas empresas mais intensivas em mão de obra e sem a opção de home office perceberam que o rigor nas regras tem um papel vital de tentar restabelecer a confiança dos empregados, já que muitos temem voltar ao trabalho antes de que haja medicamentos eficazes ou uma vacina contra a doença.

“Algumas pessoas me consultaram por estarem indecisas entre voltar ao expediente ou pedir demissão para evitar o risco de infecção no trabalho”, disse a infectologista Adélia Marçal.

Não é um medo exagerado. Nos últimas semanas, fábricas das empresas de alimentos JBS e BRF registraram centenas casos de Covid-19 entre os empregados e autoridades públicas cobraram fechamento de fábricas.

A infectologista, que tem assessorado indústrias e varejistas na retomada das operações e também a prefeitura do Rio de Janeiro na liberação de atividades como as da orla da cidade, diz que o receio é compreensível especialmente em ambientes de trabalho com menor ventilação e nos quais as empresas são menos familiarizadas com processos de qualidade, que devem ter mais dificuldade na retomada.

“Ainda há poucas das empresas considerando o que vão fazer se houver casos de infecção no retorno”, disse. E mesmo que soluções surjam logo para a pandemia, várias empresas já perceberam que mudanças recentemente introduzidas para prevenir infecções vieram para ficar.

“Alguns protocolos de segurança vão durar por um período bastante significativo”, diz a diretora no Brasil de assuntos corporativos da fabricante de chocolates e biscoitos Mondelez, Maria Claudia Souza.

A empresa, que exporta para 17 países e tem fábricas no Paraná e Pernambuco, já funciona com 100% da capacidade produtiva, mas com uma série de medidas de segurança, que incluem pagar transporte por aplicativo para os funcionários da produção.

Para além da indústria, o segmento de serviços também tem tentado se ajustar, sendo o de aviação um dos que mais adicionaram novos protocolos e procedimentos na expectativa de dar confiança ao público sobre a segurança das operações em plena pandemia.

A comissária de bordo Cynthia Holanda dos Santos, da companhia aérea Azul, afirmou que tem que apresentar várias vezes durante o voo procedimentos para evitar contaminação e estar pronta para a eventual necessidade de um passageiro ter que ser isolado, caso mostre algum sintoma da doença. E enquanto se acostuma ao aumento de procedimentos obrigatórios, Cynthia tenta aprender com novas situações, como passageiro reclamando porque outro não usa máscara ou olhares de reprovação quando um comissário espirra.

“É exigente, mas necessário para que eu possa me sentir segura”, disse ela, que é mãe de dois filhos e cujo marido também trabalha na aviação civil. “Às vezes eu tento sorrir para as crianças no voo, mas não consigo por causa da máscara.”

AVIAÇÃO

AMERICAN AILINES. REUTERS. 12 DE JUNHO DE 2020. American Airlines prevê queda de 90% na receita do 2º tri

BANGALORE, Índia (Reuters) - A American Airlines informou nesta sexta-feira que espera uma queda de 90% na receita do segundo trimestre sobre o mesmo período de 2019.

A companhia espera reduzir a queima de caixa para quase zero até o final de 2020, conforme a demanda segue em recuperação.

Por Sanjana Shivdas

ENERGIA

OPEP. REUTERS. 12 DE JUNHO DE 2020. Reunião do painel da Opep+ na próxima semana aconselhará sobre políticas, dizem fontes
Por Alex Lawler e Ahmad Ghaddar e Olesya Astakhova

LONDRES/MOSCOU (Reuters) - Uma reunião do painel da Organização dos Países Exportadores de Petróleo (Opep) marcada para a próxima semana para revisar o mercado aconselhará o grupo da Opep+ a cooperar por um corte mais amplo da oferta, disseram cinco fontes da Opep+, o que significa que serão necessárias novas conversas sobre a extensão do acordo.

A Opep, Rússia e aliados, conhecidos como Opep+, concordaram no sábado em manter cortes de produção de 9,7 milhões de barris por dia, ou 10% da demanda mundial antes do coronavírus, até o final de julho. A redução ajudou os preços do petróleo a mais que dobrar desde abril.

Para intensificar as consultas sobre a eficácia do acordo, a Opep+ também concordou que um painel chamado Comitê Conjunto de Monitoramento Ministerial (JMMC, na sigla em inglês) se reunirá mensalmente até o final de 2020. Sua primeira reunião é na quinta-feira da próxima semana.

Embora este seja um ciclo de reuniões mais frequente do que no passado, a missão do JMMC ainda é aconselhar o Opep+, disseram as fontes. Isso significa que qualquer decisão de estender o contrato de redução de oferta não seria imediata.

“É um comitê consultivo que pode fazer recomendações”, disse uma das fontes da Opep+ sob condição de anonimato sobre o papel do JMMC.

O JMMC é composto por membros da Opep Argélia, Kuwait, Venezuela, Nigéria, Iraque, Emirados Árabes Unidos e Arábia Saudita, além de países não membros, Rússia e Cazaquistão.

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SPECIAL

Dear reader,

Last week we asked you what your top concerns were about the recovery. Across sectors and around the world, many of you cited the following issues: debt (public and private), climate (how to enable a green recovery), inequality (including unemployment and poverty), a potential rise in populism, and the future of trade.

Against this backdrop, what role do you believe the IMF can play in tackling these specific issues, in both research and action? Write to me directly with your thoughts, as we are regularly discussing your feedback with relevant colleagues across the institution.

THE GREAT TRANSFORMATION

The COVID-19 crisis is inflicting the most pain on those who are already most vulnerable. This calamity could lead to a significant rise in income inequality. And it could jeopardize development gains, from educational attainment to poverty reduction. New estimates suggest that up to 100 million people worldwide could be pushed into extreme poverty, erasing all gains made in poverty reduction in the past three years. Indeed, we know from experience and recent IMF analysis that major epidemics often exacerbate pre-existing income inequality.

"Our new research, prepared jointly with the World Bank for the G20, focuses on how to increase people’s access to opportunities, no matter who they are and where they are from," writes Managing Director Kristalina Georgieva in a new blog on how best to promote an inclusive recovery. She identifies three key priorities moving forward: use fiscal stimulus wisely, empower the next generation through education, and harness the power of financial technology.

In a recent speech titled "From Great Lockdown to Great Transformation," MD Georgieva addressed the U.S. Chamber of Commerce and continued to build on the theme of seizing opportunities⁠—honing in on how best we can embrace the digital transformation, focus on building a green economy, and address inequality around the world. "The process of reopening is now starting across the globe—some 75 percent of countries are now reopening—and so now is the moment to think carefully about what comes next," said Georgieva.

SIGNIFICANT SCARRING

In a just-released virtual address to the Seventh Asian Monetary Policy Forum, Chief Economist Gita Gopinath said that when the IMF releases new economic growth projections on June 24 that they "will be, very likely, worse than what we had" in April, when it was estimated that the global economy would shrink by 3% this year. Gopinath noted that there is still "profound uncertainty" about how long the COVID-19 pandemic will persist and what will be its true impact on consumption, job losses and bankruptcies. "Many of these variables point to significant scarring effects," she said. "As such there is a big question about what the recovery would look like." Watch the 30-min presentation.

FROM RESCUE TO (GREEN) RECOVERY

Earlier this week, Deputy Managing Director Tao Zhang spoke at the Delphi Economic Forum on how best to emerge from the pandemic with an eye towards fighting climate change. He discussed the IMF's analytical and policy work on carbon pricing, and our efforts to help countries price climate risks, provide incentives for climate-resilient investment, and integrate climate risks and adaptation spending into their economic and fiscal plans.

For instance, together with the World Bank, we have begun assessing countries’ climate strategies—starting with the small countries most vulnerable to climate change. "We need the right policies to ensure a just and inclusive transition to a green economy," said Zhang. Read his full remarks here.

STRONGER ECONOMIC INSTITUTIONS

In a new blog, Deputy Managing Director Antoinette Sayeh writes that for the recovery to be sustainable, policymakers will need to strengthen economic institutions that enable resilient, inclusive policies. For example, business continuity and protecting revenue streams are crucial for governments to rapidly mobilize and maintain domestic resources. And as countries ramp up emergency spending, they also want to ensure that they have strong institutional frameworks and good governance so money can quickly get to those who need it the most – especially when it comes to health expenditures and social protection systems.

"As a former policymaker, I know first-hand the important role economic institutions can play in shaping policies that impact ordinary people. The laborious task of strengthening economic foundations is not glamorous—but it is one that can have the greatest, long-term impact on the economic and social wellbeing of people," writes Sayeh. "As the world emerges from the Great Lockdown, policymakers and development partners should treat rebuilding stronger, more resilient institutions as a top priority." Read the full blog here.

Speaking of an inclusive recovery, DMD Sayeh also recently spoke to the Women's World Banking forum on gender-balanced leadership and how best to ensure financial stability in times of crisis. "We know that increasing gender diversity on boards in the financial sector is associated with stronger financial outcomes, reduced risk, and enhanced resilience," said Sayeh. "Evidence also suggests that enhanced gender diversity on boards is associated with greater bank stability, reduced conflict, and greater focus on transparency and ethics. In fact, adding just one more woman in a firm’s senior management or corporate board is associated with between 8 and 13 basis point higher return on assets." Read her full remarks here.

THE ROLE OF FISCAL POLICY

Fiscal policies have been central for providing emergency lifelines to people and firms during the COVID-19 pandemic, and they are also at the forefront of facilitating a recovery post-lockdown. Earlier this week, Catherine Pattillo, Mehdi Raissi, and W. Raphael Lam of the IMF's Fiscal Affairs department participated in a 90-min webinar hosted by LSE on how policymakers can support a speedy and sustainable recovery. Drawing on the latest IMF Fiscal Monitor, the discussion also focused on the role of state-owned enterprises and public banks in supporting the recovery.

THE POLITICAL ECONOMY OF COVID-19

In the cover story of our summer 2020 issue of F&D magazine, Harvard professor of government Jeffry Frieden writes that public health experts have long warned that the world was likely to face a major pandemic, and called for greater preparedness. Yet policymakers who have to focus on the next election find it difficult to invest the time, money, and political capital to address the abstract possibility of a future crisis. And so most of the world was unprepared for a global public health threat of the magnitude posed by COVID-19.

Read this incredibly thoughtful 2600-word article on how policymakers in particular should be thinking about the political economy of economic policy, and how these lessons can be applied towards achieving a greener, smarter and fairer recovery. Prefer the PDF? Click here to download.

IMF AND COVID-19

We just updated our global policy tracker to help our member countries be more aware of the experiences of others in combating COVID-19, and we are regularly updating our lending tracker, which visualizes the latest emergency financial assistance and debt relief to member countries approved by the IMF’s Executive Board.

There are now 69 countries that have been approved for emergency financing, totaling about US$24.7 billion. And 28 countries that have been approved to receive debt relief from the Catastrophe Containment and Relief Trust (CCRT), totaling about US$243.6 million. Recent approvals include Rwanda, Guatemala, Tanzania, Ukraine, Papua New Guinea, Liberia and Egypt. If you're wondering how the IMF is helping ensure transparent and accountable use of COVID-19 financial assistance, read this fact sheet, and if you're looking for our latest Q&A about the IMF's response to COVID-19, click here.

We are also continually producing a special series of notes—around 50 to date—by IMF experts to help members address the economic effects of COVID-19 on a range of topics.

Thank you again very much for your interest in our newsletters. We really appreciate your time.

FULL DOCUMENT: https://content.govdelivery.com/accounts/USIMF/bulletins/2903870

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LGCJ.: