just not something that’s knowable,” Powell
acknowledged to reporters. “So actually writing
down a forecast in that circumstance didn’t
seem to be useful.”
On Wednesday, the economy continued to
shut down. A person briefed on the matter said
Detroit’s three automakers have agreed to close
all their factories due to worker fears about the
coronavirus. Automakers are expected to release
details of the closure later Wednesday. The
United Auto Workers union has been pushing
for factories to close because workers are fearful
of coming into contact with the virus.
The governor of Hawaii encouraged everyone
to postpone vacations there for at least 30
days. Nevada’s governor ordered all casinos to
close for the month. Major casinos have ceased
operations on the Las Vegas Strip.
Compounding the threat, oil prices started
to tumble in the face of weakening global
growth. Plummeting prices, though welcome to
motorists, threatened to discourage investment
by U.S. energy companies that contributes to
economic growth.
Trouble in the oil patch, in turn, put pressure
on deeply indebted oil and gas exploration and
drilling companies. This trend intensified fears
over the health of the corporate bond market
where companies go to borrow.
As the economic outlook darkened, financial
markets began to crumble — brought down,
too, by the U.S. government’s fumbling initial
response to the crisis. Despite a strong rebound
Tuesday, the Dow Jones Industrial Average
remains down more than 8,300 points, or 28%,
since Feb. 12.