Here’s a new crisis the coronavirus pandemic is responsible for: a nationwide shortage of quarters, dimes, nickels and pennies.
The economic shutdowns to stem the spread of the novel coronavirus, spurring the deepest recession in decades, has had the unintended consequence of halting the flow of coins through households, businesses and banks, the head of the
As the economy ground to a halt earlier this year, “the flow of coins through the economy has gotten all — it’s kind of stopped,” Fed Chair
“The places where you go to give your coins, and get credit at the store and get cash — you know, folding money — those have not been working. Stores have been closed,” Powell said. “So the whole system has kind of, had come to a stop. We’re well aware of this. ... As the economy reopens, we’re seeing coins begin to move around again.”
House lawmakers largely questioned Powell about the Fed’s vast portfolio of emergency relief programs, and how the central bank is targeting Americans kicked out of the workforce, midsize companies served by the Main Street Lending program and the overall stock market.
Rose mentioned one bank that may run out of coins by the end of this week or weekend and asked if the issue was on Powell’s radar.
“They should certainly be in touch with their reserve bank to report this situation,” Powell responded. “We’ve been working on this problem and very much appreciate you bringing it to our attention.”
The pandemic “has significantly disrupted the supply chain and normal circulation patterns for