Tuesday, March 17, 2020

BBC News - Rate cuts: US goes to almost zero and launches huge stimulus programme

Fed Chair Jerome PowellImage copyrightGETTY IMAGES
Image captionFederal Reserve Chairman Jerome Powell held a media conference on Sunday
The US has cut interest rates to almost zero and launched a $700bn stimulus programme in a bid to protect the economy from the effect of coronavirus.
It is part of a co-ordinated action announced on Sunday in the UK, Japan, eurozone, Canada, and Switzerland.
In a news conference Fed chairman Jerome Powell said the pandemic was having a "profound" impact on the economy.
US President Donald Trump said the emergency action "makes me very happy".
The Fed has cut rates to a target range of 0% to 0.25%, and said it would it begin buying bonds - quantitative easing - a move that pumps money directly into the economy.
The central bank had already cut interest rates by half a percentage point after an emergency meeting on 3 March. That had been the first rate cut outside of a regularly scheduled policy meeting since the financial crisis in 2008.
Stock markets have plunged in recent days amid fears that economic paralysis will wipe out corporate profits and spark a global recession.
But early indications suggest the Fed's move may not shore up financial markets. US stock market futures, which anticipate the direction of shares when trading begins, were almost 4% down.
Speaking after the emergency meeting, which was held in place of the Fed's regular rates setting decision scheduled for this week, Mr Powell warned that although it was clear the outbreak was already having a major impact on the economy it was still too early to tell just how far-reaching the effects will be.
"The economic outlook is evolving on a daily basis and it is depending on the spread of the virus... that is not something that is knowable," he said.
As part of Sunday's announcement, the Fed will work with other central banks to increase the availability of dollars for commercial banks.
These so-called currency swap lines were an important tool in maintaining financial stability after the 2008 banking crisis.
"Today's coordinated action by major central banks will improve global liquidity by lowering the price and extending the maximum term of US dollar lending operations," Bank of England Governor Mark Carney said in a joint statement with Andrew Bailey, who succeeds him as BoE chief on Monday.
The Bank of Japan also eased monetary policy by pledging to buy risky assets at double the current pace and announced a new loan programme to extend one-year, zero-rate loans to financial institutions.
Presentational grey line
Analysis box by Faisal Islam, economics editor
The Federal Reserve has now fired most of its remaining big guns to stimulate a US economy facing a serious financial shock from the coronavirus.
Interest rates were slashed by one full percentage point to just above zero, and the bank restarted the pumping of hundreds of billions of dollars into financial markets. Global central banks, including the Bank of England, joined in to ease the flow of dollars around the world.
It was the full crisis toolkit designed to inject confidence into markets that ran riot last week as the outbreak turned into a global pandemic.
While the moves should soothe the financing of US business, they also reflect that the health emergency in the US has become far worse than expected and reveals US authorities are running short of options.
Interest rate cuts are a blunt instrument to deal with a pandemic, and more is expected from Congress and the White House, in particular.
President Trump welcomed the cut, but it was his decision to ban European travel that sparked the latest record share sell off on Thursday.
There is some hope that a video conference call later between leaders of the G7 western industrialised nations, including President Trump and British Prime Minister Boris Johnson, will result in a more coordinated global approach to the virus.
The authorities will be watching markets carefully today, including Mr Bailey, on his first day in the job.
Presentational grey line
Michael Hewson, chief market analyst at UK-based CMC Markets, described the co-ordinated move as throwing "the kitchen sink at the markets. [It] serves to underscore the seriousness of the economic shocks coming our way".
And in the US, Greg McBridge, chief financial analyst at online bank and mortgage firm Bankrate.com, said: "Desperate times call for desperate measures and the Fed is doing just that in an effort to keep credit markets functioning and prevent the type of starving of credit that nearly toppled the global economy into a depression in 2008.
"Reducing interest rates to borrowers will ease the burden of existing debts slightly but is unlikely to spur the usual surge of borrowing as consumers and businesses batten down the hatches for a coming drop off in US economic activity.

Monday, March 16, 2020

Reuters News - Germany tries to halt U.S. interest in firm working on coronavirus vaccine

BERLIN (Reuters) - Berlin is trying to stop Washington from persuading a German company seeking a coronavirus vaccine to move its research to the United States, prompting German politicians to insist no country should have a monopoly on any future vaccine.

German government sources told Reuters on Sunday that the U.S. administration was looking into how it could gain access to a potential vaccine being developed by a German firm, CureVac.
Earlier, the Welt am Sonntag German newspaper reported that U.S. President Donald Trump had offered funds to lure CureVac to the United States, and the German government was making counter-offers to tempt it to stay.
Responding to the report, the U.S. ambassador to Germany, Richard Grenell, wrote on Twitter: “The Welt story was wrong.”
A U.S. official said: “This story is wildly overplayed ... We will continue to talk to any company that claims to be able to help. And any solution found would be shared with the world.”
A German Health Ministry spokeswoman, confirming a quote in the newspaper, said: “The German government is very interested in ensuring that vaccines and active substances against the new coronavirus are also developed in Germany and Europe.”
“In this regard, the government is in intensive exchange with the company CureVac,” she added.
Welt am Sonntag quoted an unidentified German government source as saying Trump was trying to secure the scientists’ work exclusively, and would do anything to get a vaccine for the United States, “but only for the United States.”
German Interior Minister Horst Seehofer told a news conference that the government’s coronavirus crisis committee would discuss the CureVac case on Monday.
CureVac issued a statement on Sunday, in which it said: “The company rejects current rumors of an acquisition”.
CureVac’s main investor Dietmar Hopp said he was not selling and wanted CureVac to develop a coronavirus vaccine to “help people not just regionally but in solidarity across the world.”
“I would be glad if this could be achieved through my long-term investments out of Germany,” he added.

Friday, March 13, 2020

BBC News - Is this the digital future for Bank of England banknotes?

Digital screenImage copyrightGETTY IMAGES
Image captionDigital money would be denominated in pounds, like banknotes
The Bank of England is considering the introduction of electronic banknotes for use by consumers and businesses.
Governor Mark Carney said: "We are in the middle of a revolution in payments," saying the Bank must look into how electronic money could work.
He said this would complement, not replace, paper banknotes while people still wanted physical cash.
But it could open the door to programmable money to integrate with home appliances or the tax system.
Banknotes have been the only way for households to make payments with central bank money for 300 years, a discussion paper published by the Bank says.
The total value of banknotes in the UK economy was close to an all-time high, but people had been making fewer payments in cash, the Bank said.
Number of payments made by a typical adult in 2018
The governor said fintech firms had begun to offer new forms of money and new ways to pay with it, but it was important to have currency from a trusted central bank.
So, the Bank is considering a Central Bank Digital Currency, which would be denominated in pounds sterling, just like banknotes. So £10 of the digital currency would always be worth the same as a £10 note.
This system would be different from money held digitally in a bank account, or cryptocurrencies. It would be guaranteed by the Bank, rather than a commercial business.
The idea also suggests that consumers would be able to pay for things without all the data about their transactions going to their bank. There would be some anonymity, as there is with cash.
Loading Central Bank Digital Currency would be an electronic version of withdrawing banknotes from an ATM. The Bank stressed this would not replace cash, particularly for those who prefer to use it.
"As long as demand for cash remains, the Bank is committed to meeting this demand," the Bank's discussion paper says.
The currency would also be separate from card payments, meaning it would not be affected by technical failures at Visa, Mastercard, or other payment networks.

Payments of the future

The introduction of a digital currency could lead to "programmable money", when payments could be integrated with appliances at home or tills at the shops.
Tax payments could be routed to HM Revenue and Customs at the point of sale, the Bank said.
Other examples are shares automatically paying dividends directly to shareholders, or electricity meters paying suppliers directly, based on the amount of power used.
It could also help with very small payments at a lower cost than now, allowing payments such as for a few pence each time to read individual news articles, rather than signing up to a monthly subscription.
Other central banks around the world are investigating the option of issuing digital currency. Interested parties are being invited to respond to the Bank of England's discussion by 12 June.

Thursday, March 12, 2020

Reuters News - Special Report: Italy and South Korea virus outbreaks reveal disparity in deaths and tactics

MILAN/SEOUL (Reuters) - In Italy, millions are locked down and more than 1,000 people have died from the coronavirus. In South Korea, hit by the disease at about the same time, only a few thousand are quarantined and 67 people have died. As the virus courses through the world, the story of two outbreaks illustrates a coming problem for countries now grappling with an explosion in cases.
It’s impractical to test every potential patient, but unless the authorities can find a way to see how widespread infection is, their best answer is lockdown.
Italy started out testing widely, then narrowed the focus so that now, the authorities don’t have to process hundreds of thousands of tests. But there’s a trade-off: They can’t see what’s coming and are trying to curb the movements of the country’s entire population of 60 million people to contain the disease. Even Pope Francis, who has a cold and delivered his Sunday blessing over the internet from inside the Vatican, said he felt “caged in the library.”
Thousands of miles away in South Korea, authorities have a different response to a similar-sized outbreak. They are testing hundreds of thousands of people for infections and tracking potential carriers like detectives, using cell phone and satellite technology.
Both countries saw their first cases of the disease called COVID-19 in late January. South Korea has since reported 67 deaths out of nearly 8,000 confirmed cases, after testing more than 222,000 people. In contrast, Italy has had 1,016 deaths and identified more than 15,000 cases after carrying out more than 73,000 tests on an unspecified number of people.
Epidemiologists say it is not possible to compare the numbers directly. But some say the dramatically different outcomes point to an important insight: Aggressive and sustained testing is a powerful tool for fighting the virus.
Jeremy Konyndyk, a senior policy fellow at the Center for Global Development in Washington, said extensive testing can give countries a better picture of the extent of an outbreak. When testing in a country is limited, he said, the authorities have to take bolder actions to limit movement of people.
“I’m uncomfortable with enforced lockdown-type movement restrictions,” he said. “China did that, but China is able to do that. China has a population that will comply with that.”
The democracies of Italy and South Korea are useful case studies for countries such as America, which have had problems setting up testing systems and are weeks behind on the infection curve. So far, in Japan and the United States particularly, the full scale of the problem is not yet visible. Germany has not experienced significant testing constraints, but Chancellor Angela Merkel warned her people on Wednesday that since 60% to 70% of the populace is likely to be infected, the only option is containment.
South Korea, which has a slightly smaller population than Italy at about 50 million people, has around 29,000 people in self-quarantine. It has imposed lockdowns on some facilities and at least one apartment complex hit hardest by outbreaks. But so far no entire regions have been cut off.
Seoul says it is building on lessons learned from an outbreak of Middle East Respiratory Syndrome (MERS) in 2015 and working to make as much information available as possible to the public. It has embarked on a massive testing program, including people who have very mild illness, or perhaps don’t even have symptoms, but who may be able to infect others.
This includes enforcing a law that grants the government wide authority to access data: CCTV footage, GPS tracking data from phones and cars, credit card transactions, immigration entry information, and other personal details of people confirmed to have an infectious disease. The authorities can then make some of this public, so anyone who may have been exposed can get themselves - or their friends and family members - tested.
In addition to helping work out who to test, South Korea’s data-driven system helps hospitals manage their pipeline of cases. People found positive are placed in self-quarantine and monitored remotely through a smartphone app, or checked regularly in telephone calls, until a hospital bed becomes available. When a bed is available, an ambulance picks the person up and takes the patient to a hospital with air-sealed isolation rooms. All of this, including hospitalization, is free of charge.
South Korea’s response is not perfect. While more than 209,000 people have tested negative there, results are still pending on about 18,000 others - an information gap that means there are likely more cases in the pipeline. The rate of newly confirmed cases has dropped since a peak in mid-February, but the system’s greatest test may still be ahead as authorities try to track and contain new clusters. South Korea does not have enough protective masks - it has started rationing them - and it is trying to hire more trained staff to process tests and map cases.
And the approach comes at the cost of some privacy. South Korea’s system is an intrusive mandatory measure that depends on people surrendering what, for many in Europe and America, would be a fundamental right of privacy. Unlike China and the island-state of Singapore, which have used similar methods, South Korea is a large democracy with a population that is quick to protest policies it does not like.
“Disclosing information about patients always comes with privacy infringement issues,” said Choi Jaewook, a preventive medicine professor at Korea University and a senior official at the Korean Medical Association. Disclosures “should be strictly limited” to patients’ movements, and “it shouldn’t be about their age, their sex, or their employers.”
Traditional responses such as locking down affected areas and isolating patients can be only modestly effective, and may cause problems in open societies, says South Korea’s Deputy Minister for Health and Welfare Kim Gang-lip. In South Korea’s experience, he told reporters on Monday, lockdowns mean people participate less in tracing contacts they may have had. “Such an approach,” he said, “is close-minded, coercive, and inflexible.”

ITALY “AT THE LIMIT”

Italy and South Korea are more than 5,000 miles apart, but there are several similarities when it comes to coronavirus. Both countries’ main outbreaks were initially clustered in smaller cities or towns, rather than in a major metropolis - which meant the disease quickly threatened local health services. And both involved doctors who decided to ignore testing guidelines.
Italy’s epidemic kicked off last month. A local man with flu symptoms was diagnosed after he had told medical staff he had not been to China and discharged himself, said Massimo Lombardo, head of local hospital services in Lodi.
The diagnosis was only made after the 38-year-old, whose name has only been given as Mattia, returned to the hospital. Testing guidelines at the time said it was not necessary to test people who had no link to China or other affected areas. But an anaesthetist pushed the protocols and decided to go ahead and test for COVID-19 anyway, Lombardo said. Now, some experts in Italy believe Mattia may have been infected through Germany, rather than China.
Decisions about testing hinge partly on what can be done with people who test positive, at a time when the healthcare system is already under stress. In Italy at first, regional authorities tested widely and counted all positive results in the published total, even if people did not have symptoms.
Then, a few days after the patient known as Mattia was found to have COVID-19, Italy changed tack, only testing and announcing cases of people with symptoms. The authorities said this was the most effective use of resources: The risk of contagion seemed lower from patients with no symptoms, and limited tests help produce reliable results more quickly. The approach carried risks: People with no symptoms still can be infected and spread the virus.
On the other hand, the more you test the more you find, so testing in large numbers can put hospital systems under strain, said Massimo Antonelli, director of intensive care at the Fondazione Policlinico Universitario Agostino Gemelli IRCCS in Rome. Testing involves elaborate medical processes and follow-up. “The problem is actively searching for cases,” he said. “It means simply the numbers are big.”
Italy has a generally efficient health system, according to international studies. Its universal healthcare receives funding below the European Union average but is comparable with South Korea’s, at 8.9% of GDP against 7.3% in South Korea, according to the World Health Organization.
Now, that system has been knocked off balance. Staff are being brought into accident and emergency departments, holidays have been canceled and doctors say they are delaying non-urgent operations to free up intensive care beds.
Pier Luigi Viale, head of the infectious disease unit at Sant’ Orsola-Malpighi hospital in Bologna, is working around the clock - in three jobs. His hospital is handling multiple coronavirus cases. His doctors are shuttling to other hospitals and clinics in the area to lend their expertise and help out with cases. In addition, his doctors also have to deal with patients with other contagious diseases who are struggling to survive.
“If it drags on for weeks or months we’ll need more reinforcements,” he told Reuters.
Last week, the mayor of Castiglione d’Adda, a town of about 5,000 people in Lombardy’s “red zone” which was the first to be locked down, made an urgent online appeal for help. He said his small town had had to close its hospital and was left with one doctor to treat more than 100 coronavirus patients. Three of the town’s four doctors were sick or in self quarantine.
“Doctors and nurses are at the limit,” said a nurse from the hospital where Mattia was taken in. “If you have to manage people under artificial respiration you have to be watching them constantly, you can’t look after the new cases that come in.”
Studies so far suggest that every positive case of coronavirus can infect two other people, so local authorities in Lombardy have warned that the region’s hospitals face a serious crisis if the spread continues - not just for COVID-19 patients but also for others whose treatment has been delayed or disrupted. As the crisis spreads into Italy’s less prosperous south, the problems will be magnified.
Intensive care facilities face the most intense pressure. They require specialist staff and expensive equipment and are not set up for mass epidemics. In total, Italy has around 5,000 intensive care beds. In the winter months, some of these are already occupied by patients with respiratory problems. Lombardy and Veneto have just over 1,800 intensive care beds between public and private systems, only some of which can be set aside for COVID-19 patients.
The government has asked regional authorities to increase the number of intensive care places by 50% and to double the number of beds for respiratory and contagious diseases, while reorganizing staff rosters to ensure adequate staffing. Some 5,000 respirators have been acquired for intensive care stations, the first of which are due to arrive on Friday, deputy Economy Minister Laura Castelli said.
The region has already asked nursing institutes to allow students to bring forward their graduation to get more nurses into the system early. Pools of intensive care specialists and anaesthetists are to be set up, including staff from outside the worst affected regions.
To add to the burden, hospitals in Italy depend on medical personnel to try to trace the contacts that people who test positive have had with others. One doctor in Bologna, who asked not to be named, said he had spent a 12-hour day tracing people who had been in contact with just one positive patient, to ensure those who next need testing are found.
“You can do that if the number of cases remains two to three,” the doctor said. “But if they grow, something has to give. The system will implode if we continue to test everyone actively and then have to do all this.”

“MAXIMUM POWER”

In South Korea as in Italy, an early case of COVID-19 was identified when a medical officer followed their intuition, rather than the official guidelines, on testing.
The country’s first case was a 35-year-old Chinese woman who tested positive on Jan. 20. But the largest outbreak was detected after the 31st patient, a 61-year-old woman from South Korea’s southeastern city of Daegu, was diagnosed on Feb. 18.
Like the patient named Mattia in Italy, the woman had no known links to Wuhan, the Chinese province where the disease was first identified. And as in Italy, the doctors’ decision to recommend a test went against guidelines at the time to test people who had been to China or been in contact with a confirmed case, said Korea Medical Association’s Choi Jaewook.
“Patient 31,” as she became known, was a member of a secretive church which Deputy Minister for Health and Welfare Kim Gang-lip said has since linked to 61% of cases. Infections spread beyond the congregation after the funeral of a relative of the church’s founder was held at a nearby hospital, and there were several other smaller clusters around the country.
Once the church cluster was identified, South Korea opened around 50 drive-through testing facilities around the country.
In empty parking lots, medical staff in protective clothing lean into cars to check their passengers for fever or breathing difficulties, and if needed, collect samples. The process usually takes about 10 minutes, and people usually receive the results in a text reminding them to wash their hands regularly and wear face masks.
A total of 117 institutions in South Korea have equipment to conduct the tests, according to the Korea Centers for Disease Control and Prevention (KCDC). The numbers fluctuate daily, but an average of 12,000 is possible, and maximum capacity is 20,000 tests a day. The government pays for tests of people with symptoms, if referred by a doctor. Otherwise, people who want to be tested can pay up to 170,000 won ($140), said an official at a company called Seegene Inc, which supplies 80% of the country’s kits and says it can test 96 samples at once.
There are also 130 quarantine officers like Kim Jeong-hwan, who focus on minute details to track potential patients. The 28-year-old public health doctor spends his whole working days remotely checking up on people who have tested positive for COVID-19, the disease caused by the virus.
Kim, who is doing military service, is one of a small army of quarantine officers who track the movements of any potential carriers of the disease by phone, app or the signals sent by cell phones or the black boxes in automobiles. Their goal: To trace all the contacts people may have had, so they too can be tested.
“I haven’t seen anyone telling bad lies,” Kim said. “But lots of people generally don’t remember exactly what they did.”
Underlining their determination, quarantine officers told Reuters they located five cases after a worker in a small town caught the virus and went to work in a “coin karaoke,” a bar where a machine lets people sing a few songs for a dollar. At first, the woman, who was showing symptoms, did not tell the officers where she worked, local officials told Reuters. But they put the puzzle together after questioning her acquaintances and obtaining GPS locations on her mobile device.
“Now, quarantine officers have maximum power and authority,” said Kim Jun-geun, an official at Changnyeong County who collects information from quarantine officers.
South Korea’s government also uses location data to customize mass messages sent to cellphones, notifying every resident when and where a nearby case is confirmed.
Lee Hee-young, a preventative medicine expert who is also running the coronavirus response team in South Korea’s Gyeonggi province, said South Korea has gone some of the way after MERS to increase its infrastructure to respond to infectious diseases. But she said only 30% of the changes the country needs have happened. For instance, she said, maintaining a trained workforce and up-to-date infrastructure at smaller hospitals isn’t easy.
“Until we fix this,” Lee said, “explosions like this can keep blowing up anywhere.”
Reporting by Emilio Parodi, Stephen Jewkes, Angelo Amante, Sangmi Cha and Ju-min Park; Additional reporting by James Mackenzie in Milan and Josh Smith in Seoul, Julie Steenhuysen in New York; Edited by Sara Ledwith and Jason Szep

BBC News - Coronavirus: FTSE 100, Dow, S&P 500 in worst day since 1987

NYSE tradersImage copyrightREUTERS
Shares around the world have plunged as investors fear the spread of the coronavirus will destroy economic growth with government action insufficient to arrest the decline.
The main UK index dropped more than 10% in its worst day since 1987.
In the US, the Dow and S&P 500 were also hit by their steepest daily falls since 1987.
The declines came despite actions by the Federal Reserve and European Central Bank to ease financial strains.
At the start of US trading, plummeting shares triggered an unusual automatic suspension in trading for the second time this week.
When trade resumed 15 minutes later, shares continued to fall, taking cues from the slide in European markets.
The S&P 500 fell 9.5% and the Nasdaq ended 9.4% lower, while losses on the UK's FTSE 100 wiped some £160.4bn off the market. In France and Germany, indexes cratered more than 12%.
"Markets are at a breaking point," said Neil Wilson, chief market analyst at Markets.com. "No one knows what a total economic shutdown, however temporary, looks like."
The declines came after the US restricted travel from mainland Europe.
Losses on European indexes accelerated after the eurozone's central bank failed to cut interest rates, although it did pledge fresh stimulus measures.
The New York branch of the Federal Reserve said it was pumping $1.5tr to ease strains in the debt markets, offering increased overnight loans to banks and expanding the kinds of assets it will buy to keep firms lending.
The announcement, which came after European markets had closed, briefly sent shares higher, but they dropped back by the end of the day.
Rate cuts by the US central bank last week and the Bank of England on Wednesday also did little to soothe investors.
"What we really need is some huge confidence that this isn't going to cause the kind of stress and horrible loss of life [it has] in Italy everywhere else in the world," said former Goldman Sachs chief economist Lord Jim O'Neill.
Stocks in Asia also saw big falls earlier, with Japan's benchmark Nikkei 225 index closing 4.4% lower.
Panicked selling led to trading halts in Brazil, while not a single company in the FTSE 100 index gained on Thursday.
Travel companies saw some of the biggest falls, driven by US President Donald Trump's 30-day ban on travellers from mainland Europe.
Shares in Delta Air Lines and United Airlines - among the most affected by the ban - dropped more than 20%. In the UK, airline group IAG was down more than 15% and Tui fell 17%.
Other companies warning on the impact of Covid-19 on Thursday included:
  • BT Group announced that chief executive Philip Jansen had tested positive for coronavirus. It said he had "relatively mild" symptoms and would work remotely
  • Broadcom said uncertainty about demand was prompting it to withdraw its 2020 growth forecast
  • Norwegian said it would ground 40% of its long-haul fleet and cancel up to 25% of its short-haul flights until the end of May
  • WH Smith issued a profit warning after the outbreak hit sales in its travel division, which includes store at airports and train stations
  • Cineworld shares fell by more than 20%. It said that in a worst-case scenario, there was a risk it might not be able to repay its debts
  • Estate agent Savills said the outbreak had caused a big drop in transactions in China and across Asia
  • Princess Cruises, a line owned by Carnival, said it would suspend operations for 60 days. Viking announced a similar move
  • Disney closed its California parks until the end of March
Oil prices also fell, with Brent crude down more than 8% at about $33 a barrel.
On the floor of the New York Stock Exchange, tensions were high. Some traders were speculating the tumbles could trigger a second trading suspension - something that has never happened, not even during the financial crisis.
Since the start of the market turmoil, indexes in the US and elsewhere have fallen more than 20% from their recent highs - a threshold that is a red flag for a recession.
"It looks increasingly likely that the coming contraction will be deeper and more protracted than we were anticipating just a few days ago," said Jay Bryson, acting chief economist at Wells Fargo. "The airline and hotel industries are in free fall, and there will be multiplier effects."
Investors in the US are now watching the US government response.
US President Donald TrumpImage copyrightAFP VIA GETTY IMAGES
Image captionUS President Donald Trump said new, temporary travel restrictions would not apply to the UK
In a presidential address on Wednesday, Mr Trump said he would extend deadlines for tax payments for those affected, increase low-cost loans to small businesses and provide financial relief for US workers who are ill, quarantined or caring for others due to the illness.
But Republicans and Democrats in Congress appear at odds over additional steps while Mr Trump's favoured approach - a tax cut for workers - has failed to garner widespread support.
"The stock market at least is saying it's not been enough yet," said Liz Ann Sonders, chief investment strategist at Charles Schwab.
Presentational grey line

Why should I care if stock markets fall?

Many people's initial reaction to "the markets" is that they are not directly affected, because they do not invest money.
Yet there are millions of people with a pension - either private or through work - who will see their savings (in what is known as a defined contribution pension) invested by pension schemes. The value of their savings pot is influenced by the performance of these investments.
So big rises or falls can affect your pension, but the advice is to remember that pension savings, like any investments, are usually a long-term bet.
Analysis box by Dominic O'Connell, business correspondent
The Western world's three largest central banks have now pitted their collective firepower against the economic chill caused by the coronavirus - to little effect.
Stock markets continue to slide. The FTSE 100 has had its worst day since Black Monday in October 1987.
Observers again might wonder what new information is spooking investors, given that central banks have in the last 10 days done their best to halt the slide. In truth, there is little new - most traders already knew that the virus is likely to cause significant economic disruption likely to push most Western economies into recession.
What may have spooked them again is President Donald Trump's decision to stop most travel between continental Europe and the United States - a big enough factor in itself, but more importantly, the manner in which it was done. There was no consultation, and Mr Trump looked uncharacteristically uncertain, as if he, too, had finally been panicked by the virus.
There is also a small, but telling detail - Mr Trump first said the ban would apply to cargo flights, but then corrected himself to say it would not. A big proportion of cargo, however, is carried in the belly holds of passenger aircraft. If there are no passenger flights, there will be much less cargo, an enormous disruption to exporters and manufacturers on both sides of the Atlantic.