COVID-19 and the US economy: FAQ on the economic impact & policy response

Aurora WDC Analysis: The federal reserve acts as a front line of defense in the face of economic downturns, such as the one we are seeing during the coronavirus pandemic. The Fed has lowered interest rates to zero and has completed sizable purchases of assets to jump start the economy. The shutting of businesses will cause the economy to contract regardless. Its important to note that much of the economic issue the United states is currently facing is not a liquidity issue, but an activity one. As states take longer to reopen, it continues a period of greatly reduced economic activity. As business stalls, people in general are spending less and thus companies, facing reduced income try to cut costs, which may adversely affect adoption of a new SaaS platform. If client companies do not have the cash to spend, then it’s very unlikely their perhaps limited resources will go towards new procurements and or renewals