Pandemic shrinks U.S. economy

Stocks lost at least 6 percent of their value in Monday morning trading on Wall Street. Airlines, restaurants, and other major swaths of the U.S. economy are slowing down or closing shop completely due to the coronavirus outbreak.

What is Washington’s reaction? The Federal Reserve took emergency action on Sunday by slashing its benchmark interest rate to nearly zero. The central bank also lowered the rate for short-term emergency loans to encourage banks to lend to households and businesses affected by the virus. Senate Majority Leader Mitch McConnell, R-Ky., recalled senators from a brief recess to work on passing a relief package that the House approved on Saturday. The legislation would offer tax incentives for companies to give workers paid sick time and family and medical leave, along with additional unemployment benefits and enhanced food programs.

Dig deeper: Listen to Nick Eicher’s conversation with financial analyst David Bahnsen about the future of the economy on Monday’s edition of The World and Everything in It.