Fight against virus should be priority for US

With people infected by the novel coronavirus being reported in all 50 states, the US administration has rolled out a trillion dollar stimulus package to bail out the world's largest economy in case it is pushed into a recession by the pandemic.

Like it or not, the pandemic has evolved into a grave public health threat in the United States that has been showing signs of getting out of control, although the state of emergency recently declared by the US administration means all resources will be mobilized to help the nation win its battle with the virus.

The question is how long will it take to secure victory, as the pandemic has brought an end to the longest growth period for the US economy and the lowest unemployment rate for the country, both of which President Donald Trump has taken great pride in.

As the state of the economy is one of the most important factors that will decide the result of the forthcoming presidential election in the United States, the bailout plan churned out by the Trump administration seems more like a knee-jerk reaction, if not a compulsory response, for the president who longs for "four more years".

To some extent, whether the Trump administration can lead the nation to victory in the war against the pandemic will directly decide his future.

But aside from quantitative easing, what his administration can do to mitigate the pandemic's shocks upon the fundamentals of the economy, and to resolve the systemic risks is quite limited. The US Federal Reserve has already lowered the benchmark interest rate twice in a short period of time. The market's pessimistic, if not panicked, reaction to the zero interest rate exposes that the US central bank is running out of ammunition.

The US administration should realize that the pandemic is far more serious than the financial crisis the country brewed in 2008, as it is a collection of systemic risks that entails comprehensive public policy packages to maintain the vitality of the economy, industry and society.

While it is necessary for the US to provide huge credit guarantees and bailouts for its affected industries in a coordinated way, which is good to sustain the world's confidence with the global supply chains, the US administration must work closely with all stakeholders, including the US Federal Reserve as well as other countries and international organizations, to make its response to the pandemic proportional to its possible influence.

It is not quick fixes that are needed, but long-acting measures to bring the public health threat under control as when public confidence is restored economic vitality will recover.