Ben Bernanke, the Former Federal Reserve Chairman, told CNBC on March 25 that he feels the Coronavirus economic stop is more like a “major snowstorm” than an economic depression. Bernanke was the one who was instrumental in guiding the Fed in its endeavours to restore the economy in 2008. As a central bank Chairman, he pulled the benchmark interest rate down to nearly zero at that time. According to Bernanke, the United States is going through an acute recession.

Bernanke said, “It is possible there’s going to be a very sharp, short, I hope short, recession in the next quarter because everything is shutting down of course. He added, “If there is not too much damage done to the workforce, to the businesses during the shutdown period, however long that may be, then we could see a fairly quick rebound.”

As per Bernanke, the 2020 crisis is very distinctive from the Great Depression. He accepts controlling the coronavirus will significantly help to restore the situation. The present scenario is due to the mix of instability and panic. He added, “Nothing is going to work, the Fed is not going to help, fiscal policy is not going to help if we don’t get the public health right if we don’t solve the problem of the virus”

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According to Bernanke, public health holds the most noteworthy significance at this point saying that if that’s taken care of then we know how to induce the economy working again.

Credits: Moneycontrol