Several states could be in a position as early as Friday to start relaxing some restrictions imposed to slow the spread of the coronavirus, U.S. President Donald Trump said Thursday.
Trump said 29 states that he described on Wednesday as being in “good shape” could meet the criteria to be in Phase 1 under new guidelines called “Opening Up America Again,” which his White House coronavirus task force unveiled on Thursday. He declined to name those states and stressed the guidelines are there as a tool for individual governors.
“Healthy Americans will now be able to return to work as conditions on the ground allow instead of a blanket shutdown. We will pursue a focus on sheltering [in place] in the highest risk individuals,” he said, adding that it’s important to establish clear scientific benchmarks on testing new case growth and hospital capacity before advancing to each phase.
The guidelines outline a phased approach to restoring normal commerce and services, but only for places with strong testing and seeing a decrease in COVID-19 cases. They set out to clear the way for an easing of restrictions in areas with low transmission of the coronavirus, while keeping them in place in harder-hit locations.
WATCH | Trump leaves it to states to decide when to reopen:
U.S. president says administration will provide guidance despite lack of widespread COVID-19 testing 1:16
Places with declining infections and strong testing would begin a three-phased gradual reopening of businesses and schools, with each phase lasting at least 14 days, meant to ensure that the virus outbreak doesn’t accelerate again.
Gradual loosening of restrictions
In Phase 1, for instance, the plan recommends strict physical distancing for all people in public. Gatherings larger than 10 people are to be avoided, and non-essential travel is discouraged.
In Phase 2, people are encouraged to maximize physical distancing where possible and limit gatherings to no more than 50 people unless precautionary measures are taken. Travel could resume.
Phase 3 envisions a return to normalcy for most Americans, with a focus on identification and isolation of any new infections.
Still, Dr. Deborah Birx, the White House coronavirus task force co-ordinator, and Dr. Anthony Fauci, the nation’s top infection diseases expert, said it would be a “new normal.”
But Trump pushed back, suggesting that people wanted to return to watch football games and fill restaurants. “That’s going to happen, and it’s going to be relatively quickly,” he predicted.
At earliest, the guidelines suggest that some parts of the country could see a resumption in normal commerce and social gatherings after a month of evaluating whether the easing of restrictions leads to a resurgence in virus cases. In other parts of the country or if virus cases resume an uptick, it could be substantially longer.
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‘Call your own shots’
Trump briefed the governors on the plan Thursday afternoon, saying they were going to be responsible for deciding when it is safe to lift restrictions in their states.
“You’re going to call your own shots. We’re going to be standing along side of you,” Trump told the governors, who have the primary responsibility for public health in their states.
Meanwhile, under the federal guidelines, those most susceptible to the respiratory disease would be advised to remain sheltered in place until their area enters the final phase — and even then are advised to take precautions to avoid close contact with other people.
The federal guidelines come after seven governors in the Midwest announced Thursday they will co-ordinate on reopening the economy, after similar pacts were announced earlier this week in the West and Northeast.
New task force
Trump held conference calls earlier Thursday with lawmakers he named to a new congressional advisory task force. The economic costs were clear in new federal data showing that at least 22 million Americans have been thrown out of work in the last month. But the legislators repeatedly urged the president not to sacrifice public health in an effort to reopen the economy.
“My highest priority on this task force will be to ensure the federal government’s efforts to reopen our economy are bipartisan, data-driven and based on the expertise of public health professionals,” said Democratic Sen. Mark Warner of Virginia.
People wear protective masks while standing in line outside a pop-up food pantry, on Thursday in Chelsea, Mass. (Steven Senne/The Associated Press)
Business leaders, too, raised concerns to the president in a round of calls Wednesday, warning that a dramatic increase in testing and wider availability of protective equipment will be necessary before they can safely revive operations.
The federal government envisions a gradual recovery from the virus, in which disruptive mitigation measures may be needed in some places at least until a vaccine is available — a milestone unlikely to be reached until sometime next year.
“It’s not going to immediately be a situation where we have stadiums full of people,” said Housing and Urban Development Secretary Ben Carson on Thursday. “We’re Americans. We will adapt.”
New Jersey Gov. Phil Murphy said at a news conference before the call with the White House that he planned to ask the president for “direct cash assistance,” citing the state’s troubled tax revenues. He also said he would press for “robust health-care infrastructure” and mass testing with quick turnaround times before reopening the economy.
‘Past the peak’
Trump said Wednesday that data suggests the U.S. is “past the peak” of the COVID-19 epidemic. He said the numbers have “put us in a very strong position to finalize guidelines for states on reopening the country.”
Birx added that data from across the country showed the nation “improving,” but that Americans had to recommit to physical distancing to keep up the positive momentum.
Protesters drive past the state capitol in Lansing, Mich., on Wednesday to show their displeasure with Gov. Gretchen Whitmer’s orders to keep people at home and most businesses closed. (Paul Sancya/The Associated Press)
She said nine states have fewer than 1,000 cases and just a few dozen new cases per day. She said those would likely be the first to see a lifting in distancing restrictions at the direction of their governors under the guidelines.
But participants in a Wednesday call with Trump that included executives of dozens of leading American companies raised concerns about the testing issue, according to one participant who spoke on condition of anonymity to describe the private discussion.
‘Economy will look very different’
Another participant said it was stressed to Trump that expansion of testing and contact tracing was crucial, as well as guidelines for best practices on reopening businesses in phases or in one fell swoop.
The participant said those on the call noted to the administration that there was about to be a rush on personal protective equipment. Many businesses that are now shuttered will need the protective equipment to keep their employees and customers safe.
Trump was told “the economy will look very different and operations will look very different,” one participant said.
South Carolina Sen. Lindsey Graham, a Republican close to Trump, said the lack of widespread testing was an impediment to lifting the distancing guidelines. “We are struggling with testing at a large scale.,” he told ABC’s The View. “You really can’t go back to work until we have more tests.”
But some of Trump’s conservative allies, like economist Stephen Moore, have encouraged him to act swiftly, warning of “a mini-Great Depression if we keep the economy shut down.”
“That is a catastrophic outcome for our country. Period,” Moore said he advised the president. “We can’t have 30 million people in this country unemployed or you’re going to have social chaos.”
The panel, which Trump dubbed the new Great American Economic Revival Industry Groups, also could help give him a measure of cover. If cases surge once restrictions are lifted, as many experts have warned, Trump will be able to tell the public he didn’t act alone and the nation’s top minds — from manufacturing to defence to technology — helped shape the plan.
OTTAWA – Finance Minister Chrystia Freeland says the government is making some changes to mortgage rules to help more Canadians to purchase their first home.
She says the changes will come into force in December and better reflect the housing market.
The price cap for insured mortgages will be boosted for the first time since 2012, moving to $1.5 million from $1 million, to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
On Aug. 1 eligibility for the 30-year amortization was changed to include first-time buyers purchasing a newly-built home.
Justice Minister Arif Virani is also releasing drafts for a bill of rights for renters as well as one for homebuyers, both of which the government promised five months ago.
Virani says the government intends to work with provinces to prevent practices like renovictions, where landowners evict tenants and make minimal renovations and then seek higher rents.
The government touts today’s announced measures as the “boldest mortgage reforms in decades,” and it comes after a year of criticism over high housing costs.
The Liberals have been slumping in the polls for months, including among younger adults who say not being able to afford a house is one of their key concerns.
This report by The Canadian Press was first published Sept. 16, 2024.
OTTAWA – Statistics Canada says manufacturing sales rose 1.4 per cent to $71 billion in July, helped by higher sales in the petroleum and coal and chemical product subsectors.
The increase followed a 1.7 per cent decrease in June.
The agency says sales in the petroleum and coal product subsector gained 6.7 per cent to total $8.6 billion in July as most refineries sold more, helped by higher prices and demand.
Chemical product sales rose 5.3 per cent to $5.6 billion in July, boosted by increased sales of pharmaceutical and medicine products.
Sales of wood products fell 4.8 per cent for the month to $2.9 billion, the lowest level since May 2023.
In constant dollar terms, overall manufacturing sales rose 0.9 per cent in July.
This report by The Canadian Press was first published Sept. 16, 2024.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets climbed to their best week of the year.
“It’s been almost a complete opposite or retracement of what we saw last week,” said Philip Petursson, chief investment strategist at IG Wealth Management.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
While last week saw a “healthy” pullback on weaker economic data, this week investors appeared to be buying the dip and hoping the central bank “comes to the rescue,” said Petursson.
Next week, the U.S. Federal Reserve is widely expected to cut its key interest rate for the first time in several years after it significantly hiked it to fight inflation.
But the magnitude of that first cut has been the subject of debate, and the market appears split on whether the cut will be a quarter of a percentage point or a larger half-point reduction.
Petursson thinks it’s clear the smaller cut is coming. Economic data recently hasn’t been great, but it hasn’t been that bad either, he said — and inflation may have come down significantly, but it’s not defeated just yet.
“I think they’re going to be very steady,” he said, with one small cut at each of their three decisions scheduled for the rest of 2024, and more into 2025.
“I don’t think there’s a sense of urgency on the part of the Fed that they have to do something immediately.
A larger cut could also send the wrong message to the markets, added Petursson: that the Fed made a mistake in waiting this long to cut, or that it’s seeing concerning signs in the economy.
It would also be “counter to what they’ve signaled,” he said.
More important than the cut — other than the new tone it sets — will be what Fed chair Jerome Powell has to say, according to Petursson.
“That’s going to be more important than the size of the cut itself,” he said.
In Canada, where the central bank has already cut three times, Petursson expects two more before the year is through.
“Here, the labour situation is worse than what we see in the United States,” he said.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Sept. 13, 2024.
