Former Fed Chairs Bernanke and Yellen testified on COVID-19 and response to economic crisis

In many respects this recession is unique. Most recessions result from developments inside the economy, but an external shockthe public health crisiscaused this one. To avoid getting sick, people have curtailed working, shopping, and attending school. Whatever the cause, the coronavirus recession, like all recessions, is imposing heavy costs. Many workers have lost jobs and income, and many business owners financial survival is at risk. The economys extraordinarily rapid decline earlier this yearas well as the sharp but incomplete rebound following the first steps toward reopeningreflect this recessions unusual source. In addition, the sectors suffering most differ from past recessions. The heaviest blows have fallen on service industries that involve close personal contact (including retail trade, leisure and hospitality, and transportation) rather than, as is more typical, on the housing, capital investment, and durable goods sectors. Lower-paid workers, as well as women and minorities, are over-represented in the most-affected sectors, and thus have borne a disproportionate share of the job and income losses. And, the virus has affected almost every country, with potentially devastating consequences for trade and international investment.