Economics in the News – June 8-14

Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.

• Many colleges and universities across the United States are putting plans in place to bring students to campus for the fall semester. Some schools, such as University of North Carolina, are planning to bring students to campus earlier than normal and to finish the fall semester by Thanksgiving. UNC-CH Chancellor Kevin Guskiewicz joined CBS’ 60 Minutes to discuss the plan and the potential economic impact it would have if classes in the fall were moved online. [60 Minutes]
  
  
• Americans could benefit from low interest rates for years to come. Federal Reserve chairman Jerome Powell indicated a slow recovery from a coronavirus fueled recession and that interest rates are unlikely to change with rates remaining near zero for the foreseeable future. [The New York Times]
  
  
• Britain’s economy suffered a significant drop in April, as GDP nosedived 20.4% during the coronavirus lockdown. The 20.4% drop in April comes a month after a 5.8% decline in March. Widespread contractions throughout the economy led to the decline in GDP. [Sky News]
  
  
• The World Bank reports on the economic devastation that the coronavirus pandemic has caused the global economy, comparing the current economic climate to 13 recessions dating back to 1870. The global crisis will impact developing countries and will push millions back into poverty. [NPR]
  
  
• One U.S. city is trying to provide relief for its renters. Ithaca, N.Y., is looking to cancel unpaid rent payments for the months of April, May and June for the estimated 70% of its population that rents, including all residential and small businesses. The current unemployment rate in Ithaca is approaching 11%. [USA Today]
  
  
• Trials of potential coronavirus vaccines could be launched this summer. The United States federal government plans to fund tests for several experimental vaccines. The three companies that will test their vaccine, include Moderna, Oxford University and AstraZeneca, along with Johnson & Johnson. [The Wall Street Journal]