Federal Reserve – Semiannual Monetary Policy Report to the Congress

https://www.federalreserve.gov/newsevents/testimony/powell20200616a.htm

Federal Reserve Board - Structure of the Federal Reserve System

Chair Powell submitted identical remarks to the Committee on Financial Services, U.S. House of Representatives, Washington, D.C., on June 17, 2020.

Chairman Crapo, Ranking Member Brown, and other members of the Committee, thank you for the opportunity to present the Federal Reserve’s semiannual Monetary Policy Report.

Our country continues to face a difficult and challenging time, as the pandemic is causing tremendous hardship here in the United States and around the world. The coronavirus outbreak is, first and foremost, a public health crisis. The most important response has come from our health-care workers. On behalf of the Federal Reserve, I want to express our sincere gratitude to these dedicated individuals who put themselves at risk, day after day, in service to others and to our nation.

Current Economic Situation and Outlook
Beginning in mid-March, economic activity fell at an unprecedented speed in response to the outbreak of the virus and the measures taken to control its spread. Even after the unexpectedly positive May employment report, nearly 20 million jobs have been lost on net since February, and the reported unemployment rate has risen about 10 percentage points, to 13.3 percent. The decline in real gross domestic product (GDP) this quarter is likely to be the most severe on record. The burden of the downturn has not fallen equally on all Americans. Instead, those least able to withstand the downturn have been affected most. As discussed in the June Monetary Policy Report, low-income households have experienced, by far, the sharpest drop in employment, while job losses of African Americans, Hispanics, and women have been greater than that of other groups. If not contained and reversed, the downturn could further widen gaps in economic well-being that the long expansion had made some progress in closing.

Recently, some indicators have pointed to a stabilization, and in some areas a modest rebound, in economic activity. With an easing of restrictions on mobility and commerce and the extension of federal loans and grants, some businesses are opening up, while stimulus checks and unemployment benefits are supporting household incomes and spending. As a result, employment moved higher in May. That said, the levels of output and employment remain far below their pre-pandemic levels, and significant uncertainty remains about the timing and strength of the recovery. Much of that economic uncertainty comes from uncertainty about the path of the disease and the effects of measures to contain it. Until the public is confident that the disease is contained, a full recovery is unlikely.

Moreover, the longer the downturn lasts, the greater the potential for longer-term damage from permanent job loss and business closures. Long periods of unemployment can erode workers’ skills and hurt their future job prospects. Persistent unemployment can also negate the gains made by many disadvantaged Americans during the long expansion and described to us at our Fed Listens events. The pandemic is presenting acute risks to small businesses, as discussed in the Monetary Policy Report. If a small or medium-sized business becomes insolvent because the economy recovers too slowly, we lose more than just that business. These businesses are the heart of our economy and often embody the work of generations.

With weak demand and large price declines for some goods and services—such as apparel, gasoline, air travel, and hotels—consumer price inflation has dropped noticeably in recent months. But indicators of longer-term inflation expectations have been fairly steady. As output stabilizes and the recovery moves ahead, inflation should stabilize and then gradually move back up over time closer to our symmetric 2 percent objective. Inflation is nonetheless likely to remain below our objective for some time.

Monetary Policy and Federal Reserve Actions to Support the Flow of Credit
The Federal Reserve’s response to this extraordinary period is guided by our mandate to promote maximum employment and stable prices for the American people, along with our responsibilities to promote the stability of the financial system. We are committed to using our full range of tools to support the economy in this challenging time.

In March, we quickly lowered our policy interest rate to near zero, reflecting the effects of COVID-19 on economic activity, employment, and inflation, and the heightened risks to the outlook. We expect to maintain interest rates at this level until we are confident that the economy has weathered recent events and is on track to achieve our maximum-employment and price-stability goals.

We have also been taking broad and forceful actions to support the flow of credit in the economy. Since March, we have been purchasing sizable quantities of Treasury securities and agency mortgage-backed securities in order to support the smooth functioning of these markets, which are vital to the flow of credit in the economy. As described in the June Monetary Policy Report, these purchases have helped restore orderly market conditions and have fostered more accommodative financial conditions. As market functioning has improved since the strains experienced in March, we have gradually reduced the pace of these purchases. To sustain smooth market functioning and thereby foster the effective transmission of monetary policy to broader financial conditions, we will increase our holdings of Treasury securities and agency mortgage-backed securities over coming months at least at the current pace. We will closely monitor developments and are prepared to adjust our plans as appropriate to support our goals.

To provide stability to the financial system and support the flow of credit to households, businesses, and state and local governments, the Federal Reserve, with the approval of the Secretary of the Treasury, established 11 credit and liquidity facilities under section 13(3) of the Federal Reserve Act. The June Monetary Policy Report provides details on these facilities, which fall into two categories: stabilizing short-term funding markets and providing more-direct support for credit across the economy.

To help stabilize short-term funding markets, the Federal Reserve set up the Commercial Paper Funding Facility and the Money Market Liquidity Facility to stem rapid outflows from prime money market funds. The Fed also established the Primary Dealer Credit Facility, which provides loans against good collateral to primary dealers that are critical intermediaries in short-term funding markets.

To more directly support the flow of credit to households, businesses, and state and local governments, the Federal Reserve established a number of facilities. To support the small business sector, we established the Paycheck Protection Program Liquidity Facility to bolster the effectiveness of the Coronavirus Aid, Relief, and Economic Security Act’s (CARES Act) Paycheck Protection Program. Our Main Street Lending Program, which we are in the process of launching, supports lending to both small and midsized businesses. The Term Asset-Backed Securities Loan Facility supports lending to both businesses and consumers. To support the employment and spending of investment-grade businesses, we established two corporate credit facilities. And to help U.S. state and local governments manage cash flow pressures and serve their communities, we set up the Municipal Liquidity Facility.

The tools that the Federal Reserve is using under its 13(3) authority are appropriately reserved for times of emergency. When this crisis is behind us, we will put them away. The June Monetary Policy Report reviews the implications of these tools for the Federal Reserve’s balance sheet.

Many of these facilities have been supported by funding from the CARES Act. We will be disclosing, on a monthly basis, names and details of participants in each such facility; amounts borrowed and interest rate charged; and overall costs, revenues, and fees for each facility. We embrace our responsibility to the American people to be as transparent as possible, and we appreciate that the need for transparency is heightened when we are called upon to use our emergency powers.

We recognize that our actions are only part of a broader public-sector response. Congress’s passage of the CARES Act was critical in enabling the Federal Reserve and the Treasury Department to establish many of the lending programs. The CARES Act and other legislation provide direct help to people, businesses, and communities. This direct support can make a critical difference not just in helping families and businesses in a time of need, but also in limiting long-lasting damage to our economy.

I want to end by acknowledging the tragic events that have again put a spotlight on the pain of racial injustice in this country. The Federal Reserve serves the entire nation. We operate in, and are part of, many of the communities across the country where Americans are grappling with and expressing themselves on issues of racial equality. I speak for my colleagues throughout the Federal Reserve System when I say, there is no place at the Federal Reserve for racism and there should be no place for it in our society. Everyone deserves the opportunity to participate fully in our society and in our economy.

We understand that the work of the Federal Reserve touches communities, families, and businesses across the country. Everything we do is in service to our public mission. We are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible.

Thank you. I am happy to take your questions.

 

 

 

 

Axios-Ipsos poll: Americans fear a second wave

https://www.axios.com/axios-ipsos-coronavirus-index-second-wave-87c327c2-42bb-43a5-80b2-5f2f513a24b2.html

Axios-Ipsos poll: Americans fear a second wave - Axios

Eight in 10 Americans are worried about a second wave of the coronavirus, with large majorities saying they’ll resume social distancing, dial back shopping and keep their kids out of school if it happens, in Week 13 of the Axios-Ipsos Coronavirus Index.

Why it matters: Businesses and schools around the country are trying to assess how quickly and fully they should reopen based in part on what Americans will demand and tolerate. These findings underscore the challenges in predicting how they should proceed.

  • But getting Americans to swallow a second round of 14-day self-quarantining could be tougher than getting them to go back to social distancing, with one in three saying they likely won’t do it.
  • The biggest factor is partisan identification, with 81% of Democrats but only 49% of Republicans saying they’ll self-quarantine if a second wave hits.

The big picture: The latest installment of our national weekly survey shows a renewed sense of risk following reports of new hospitalizations since states began lifting stay-at-home orders — but quarantine fatigue is still driving people to take their chances.

  • People’s assessment of large or moderate risk grew last week for each of these categories: returning to their normal workplace, dining out, retail shopping, going to the hair salon or participating in protests.
  • But the share of those going out to eat rose from 31% to 41%. Those visiting friends or relatives rose from 56% to 60%. Those getting their hair done rose from 26% to 31%. Those attending demonstrations rose from 11% to 14%.

What they’re saying: “People are starting to be concerned about it again,” said pollster Chris Jackson, senior vice president for Ipsos Public Affairs. “We’re not yet seeing changes in the patterns of their behavior yet, though.”

  • Their behaviors are not really catching up to their concern level.”

By the numbers: 81% say they’re concerned about a second wave — including those who are extremely (30%), very (26%) or somewhat (24%) concerned.

  • 64% of those surveyed say returning to their normal pre-coronavirus life represents a large or moderate risk, up from 57% a week ago.
  • The share of people extremely or very concerned about getting sick rose from 32% to 40% last week. Those fearing U.S. economic collapse rose from 48% to 54%.
  • There also were upticks in people’s concerns about job security and the government’s response to the outbreak.
  • Americans’ ability to afford household goods also decreased.
  • One in 10 surveyed say they’ve been collecting unemployment benefits in recent weeks.
  • 35% of Americans now know someone who’s tested positive, a new high for the survey.

Between the lines: The survey suggests an evolving understanding of the racial disparities in the pandemic.

  • The share of those saying they are extremely or very concerned that the coronavirus is doing greater damage to people of color rose from 36% to 42%.
  • The share of those extremely or very concerned that official responses are biased against certain groups also rose from 36% to 42%.

 

 

 

 

Tower Health cutting 1,000 jobs as COVID-19 losses mount

https://www.inquirer.com/business/health/tower-health-hospital-layoffs-covid-19-20200616.html

Tower Health cutting 1,000 jobs as COVID-19 losses mount

Tower Health on Tuesday announced that it is cutting 1,000 jobs, or about 8 percent of its workforce, citing the loss of $212 million in revenue through May because of the coronavirus restrictions on nonurgent care.

Fast-growing Tower had already furloughed at least 1,000 employees in April. It’s not clear how much overlap there is between the furloughed employees, some of whom have returned to work, and the people who are now losing their jobs permanently. Tower employs 12,355, including part-timers.

“The government-mandated closure of many outpatient facilities and the suspension of elective procedures caused a 40 percent drop in system revenue,” Tower’s president and chief executive, Clint Matthews, wrote in an email to staff. “At the same time, our spending increased for personal protective equipment, staff support, and COVID-related equipment needs.”

Despite the receipt of $66 million in grants through the federal CARES Act, Tower reported an operating loss of $91.6 million in the three months ended March 31, according to its disclosure to bondholders.

Tower, which is anchored by Reading Hospital in Berks County, expanded most recently with the December acquisition of St. Christopher’s Hospital for Children in a partnership with Drexel University. Tower paid $50 million for the hospital’s business, but also signed a long-term lease with a company that paid another $65 million for the real estate.

In 2017, Tower paid $418 million for five community hospitals in Southeastern Pennsylvania — Brandywine in Coatesville, Chestnut Hill in Philadelphia, Jennersville Regional in West Grove, Phoenixville in Phoenixville, and Pottstown Memorial Medical Center, now called Pottstown Hospital, in Pottstown.

Tower’s goal was to remain competitive as bigger systems — the University of Pennsylvania Health System and Jefferson Health from the Southeast, Lehigh Valley Health Network and St. Luke’s University Health Network from the east and northeast, and University of Pittsburgh Medical Center from the west — encroached on its Berk’s county base.

Tower had set itself a difficult task in the best of times, but COVID-19 has made it significantly harder for the nonprofit, which had an operating loss of $175 million on revenue of $1.75 billion in the year ended June 30, 2019.

Because health systems have high fixed costs for buildings and equipment needed no matter how many patients are coming through the door, it’s hard for them to limit the impact of the 30% to 50% collapse in demand caused by the coronavirus pandemic.

“Hospitals and all other health service providers were hit with this disruption with lightning speed, forcing the industry to learn in real time how to handle a situation for which there was no playbook,” Standard & Poor’s analysts David P. Peknay and Suzie R. Desai said in a research report last month.

Tower’s said positions will be eliminated in executive, management, clinical, and support areas.

The cuts include consolidations of clinical operations. Tower plans to close Pottstown Hospital’s maternity unit, which employs 32 nurses and where 359 babies were born in 2018, according to the most recent state data. Tower also has maternity units at Reading Hospital in West Reading and at Phoenixville Hospital.

Tower is aiming to trim expenses by $230 million over the next two years, Matthews told staff.

Like many other health systems, Tower has taken advantage of federal programs to ensure that it has ample cash in the bank to run its businesses. Tower has deferred payroll taxes, temporarily sparing $25 million. It received $166 million in advanced Medicare payments in April.

In the private sphere, Tower obtained a $40 million line of credit in April for St. Chris, which has lost $23.6 million on operations since Tower and Drexel bought it in December. Last month, Tower said it was in the final stages of negotiating a deal to sell and then lease back 24 medical office buildings. That was expected to generate $200 million in cash for Tower.

 

 

 

 

Masks Help Stop The Spread Of Coronavirus, Studies Say—But Wearing Them Still A Political Issue

https://www.forbes.com/sites/sarahhansen/2020/06/13/masks-help-stop-the-spread-of-coronavirus-studies-say-but-wearing-them-still-a-political-issue/#1d0be5a0604e

Trump administration and Cuomo finally agree on one thing ...

TOPLINE

Despite a raft of data suggesting that wearing face masks (in conjunction with hand washing and social distancing) is effective in preventing person-to-person transmission of the coronavirus, the practice is still a partisan political issue in some places even as new cases continue to rise. 

 

KEY FACTS

new review published in The Lancet looked at 172 observational studies and found that masks are effective in many settings in preventing the spread of the coronavirus (though the results cannot be treated with absolute certainty since they were not obtained through randomized trials, the Washington Post notes).

Another recent study found that wearing a mask was the most effective way to reduce the transmission of the virus.

90% of Americans now say they’re wearing a mask in compliance with the CDC’s recommendations, up from 78% in April, according to a new poll conducted by NORC at the University of Chicago for the Data Foundation.

But despite the conclusive research and what seems to be a public consensus, masks remain a divisive subject. 

As new coronavirus cases surge in Arizona, where cases have jumped 300% since the beginning of May, for instance, Governor Doug Ducey has not made it mandatory to wear masks in public, and in Orange County, California, officials on Friday rescinded a mask mandate after public backlash, even as cases rise; when cases peaked in April, on the other hand, New York made wearing a mask mandatory when people could not socially distance from others, and other states passed similar restrictions.

Part of the politicization of masks may have to do with resistance to heavy-handed government mandates, which in this case could cause people who are already skeptical of wearing face coverings to dig in their heels.

 

CRUCIAL QUOTE

Lindsay Wiley, an American University Washington College of Law professor specializing in public health law and ethics, told NPR last month that stringent mask requirements “can actually cause people who are skeptical of wearing masks to double down.” And in turn, that “reinforce[s] what they perceive to be a positive association with refusing to wear a mask … that they love freedom, that they’re smart and skeptical of public health recommendations.” 

 

KEY BACKGROUND

Masks have also become a heavily politicized issue in recent weeks: Senate Majority Leader Mitch McConnell (R-Ky.) last month voiced his support of mask wearing in public, for instance, in contrast to President Trump and other GOP leaders who have portrayed masks as a sign of weakness. Trump infamously refused to wear a face mask as he toured a Ford facility in Michigan last month. When asked about the mask, he said that he wore one in private but “didn’t want to give the press the pleasure of seeing it.” House Speaker Nancy Pelosi has  voiced her support for the practice: “real men wear masks,” she said earlier this month.

 

TANGENT

A video posted to Twitter on Friday showed a street in New York City’s East Village that was packed with people ignoring social distancing guidelines, most of whom were not wearing masks, drew widespread criticism. “When there’s a new spike people will blame the (masked) protests, but it’s really gonna be maskless crap like this,” one Twitter user wrote. 

New York Governor Andrew Cuomo even weighed in on the scene. “Don’t make me come down there,” he tweeted.

 

 

 

 

Here Are All The States Where Coronavirus Cases Are Spiking

https://www.forbes.com/sites/sarahhansen/2020/06/13/here-are-all-the-states-where-coronavirus-cases-are-spiking/?utm_source=newsletter&utm_medium=email&utm_campaign=dailydozen&cdlcid=5d2c97df953109375e4d8b68#31fb4d452dd5

Here Are All The States Where Coronavirus Cases Are Spiking

TOPLINE

Some states are seeing a dramatic surge in new coronavirus infections even as reopening measures continue across the country, raising tough questions about whether those reopening efforts were premature and how officials will balance maintaining public safety with preventing more economic damage.  

 

KEY FACTS

Texas and Florida—two of the first states to reopen—both hit new daily highs last week. 

California also hit a record daily high last week, though one official attributed the spike to increased testing (Florida’s governor has also attributed his state’s spike to more testing).

Arkansas, Alabama, North Carolina, South Carolina, Utah and Alaska have also seen surging case numbers over the last week.

On Friday, the CDC released new forecasts that singled out six states—Arizona, Arkansas, Hawaii, North Carolina, Utah and Vermont—where the coronavirus death toll is likely to rise over the next month. 

Some states and cities have walked back reopening measures in response to surging cases: Oregon’s governor put the reopening process on pause on Friday after the state saw its highest level of new cases since the start of the pandemic; Utah’s governor issued a similar order, as did the mayor of Nashville, Tennessee.

According to data compiled by Johns Hopkins, more than 2 million Americans have contracted Covid-19, the disease caused by the coronavirus, since the beginning of the pandemic, and more than 114,000 have died. 

 

KEY BACKGROUND

Even though news of states hitting record levels of coronavirus cases day after day might make it seem like the U.S. is headed for a second wave of the virus, the country is still situated very firmly within the “first wave.” New infections peaked around 36,000 cases a day in April, according to New York Times data, and over the last month the number of new daily cases has held relatively steady around 20,000. Cases in former hot spots like New York and New Jersey have fallen dramatically while cases in many areas of the South and West continue to rise. For a true “second wave” of the virus to be possible, the virus would need to subside and then reappear. 

 

CRUCIAL QUOTE

“We really never quite finished the first wave,” Dr. Ashish Jha, a professor of global health at Harvard University, told NPR. “And it doesn’t look like we are going to anytime soon.”

 

 

 

 

Fauci Says ‘Real Normality’ Unlikely For A Year As U.S. Continues Pandemic Slog

https://www.forbes.com/sites/lisettevoytko/2020/06/14/fauci-says-real-normality-unlikely-for-a-year-as-us-continues-pandemic-slog/?utm_source=newsletter&utm_medium=email&utm_campaign=dailydozen&cdlcid=5d2c97df953109375e4d8b68#2511f59a1855

Fauci Says 'Real Normality' Unlikely For A Year As U.S. Continues ...

TOPLINE

Dr. Anthony Fauci told a British newspaper Sunday that something resembling normal life in the U.S. would likely return in “a year or so,” with the coronavirus pandemic expected to require social distancing and other mitigation efforts through the fall and winter, although political divisiveness, reopening efforts and the George Floyd protests could add more layers of difficulty to the country’s recovery.

KEY FACTS

“I would hope to get to some degree of real normality within a year or so. But I don’t think it’s this winter or fall,” Fauci, director of the National Institute of Allergy and Infectious Diseases, told The Telegraph Sunday.

Fauci also told the newspaper that the travel ban from the U.K., the European Union, China and Brazil will likely stay in place for “months,” based on “what’s going on with the infection rate.”

Within the U.S., Florida, California and Texas hit all-time daily highs in reported Covid-19 cases, while the Centers for Disease Control predicted six states (Arizona, Arkansas, Hawaii, North Carolina, Utah and Vermont) will see higher death tolls over the next month.

U.S., where states that aren’t making them mandatory, like California, are seeing cases spike while New York, where the protective gear is required, has the country’s lowest spread rate.

“We’re seeing several states, as they try to reopen and get back to normal, starting to see early indications [that] infections are higher than previously,” Fauci said.

BIG NUMBER

Over 2 million. That’s how many confirmed coronavirus cases are in the U.S., which leads the world both in the number of infections and casualties from the disease, according to data from Johns Hopkins University.

WHAT TO WATCH FOR

Despite Fauci’s immediate conservative outlook on when life can return to normal, he’s hopeful that multiple Covid-19 vaccines could be found by the end of 2020. “We have potential vaccines making significant progress. We have maybe four or five,” he told The Telegraph. Although “you can never guarantee success with a vaccine,” Fauci added, from “everything we have seen from early results, it’s conceivable we get two or three vaccines that are successful.”

SURPRISING FACT

The U.S. is not facing a second wave of coronavirus. “We really never quite finished the first wave,” according to Dr. Ashish Jha, a global health professor at Harvard. In an NPR interview, Jha said the first wave is unlikely to be finished “anytime soon.”

KEY BACKGROUND

The World Health Organization designated the coronavirus outbreak as a pandemic on March 11, 2020. As of Sunday, the pandemic is approaching its fifth month, and few countries have had success in beating back their outbreaks. New Zealand has essentially returned to normal life after eliminating coronavirus, while countries like the U.S., the U.K. and Brazil, among others, continue to see new cases and report deaths.

Within the U.S., efforts to reduce cases and deaths, like mask wearing, have become partisan political issues. Desires both from elected officials and some citizens to reopen economies have also impacted the pandemic, as states that reopened earlier, like Florida, are seeing numbers of cases spike. Concerns that recent protests sparked by George Floyd’s killing will also further spread the coronavirus are present, but have not yet been proven, as symptoms can take up to 14 days to develop.

 

 

Beijing goes into ‘wartime mode’ as virus emerges at market

https://www.washingtonpost.com/world/beijing-goes-into-wartime-mode-as-virus-emerges-at-market-in-chinese-capital/2020/06/13/65c5aac8-ad40-11ea-868b-93d63cd833b2_story.html?stream=top&utm_campaign=newsletter_axiosvitals&utm_medium=email&utm_source=newsletter

Beijing district in 'wartime emergency mode' after spike in local ...

A district in central Beijing has gone into “wartime mode” after discovering a cluster of coronavirus cases around the biggest meat and vegetable market in the city, raising the prospect of a second wave of infections in the sensitive capital, the seat of the Chinese Communist Party.

The discovery of dozens of infections, both symptomatic and asymptomatic, underscores the perniciousness of the virus and its propensity to spread despite tight social controls.

“We would like to warn everyone not to drop their guard even for a second in epidemic prevention control; we must be prepared for a prolonged fight with the virus,” Xu Hejian, a spokesman for the Beijing municipal government, said at a news conference Saturday.

“We have to stay alert to the risks of imported cases and to the fact that epidemic control in our city is complicated and serious and will be here for a long time,” he said.

Coronavirus surges across the U.S.

https://www.axios.com/newsletters/axios-vitals-64a706e3-e179-4531-82b1-f82e9bb422c3.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosvitals&stream=top

As more Texas businesses open, health experts watch and wait

Coronavirus cases and hospitalizations are reaching alarming levels in some states.

What they’re saying: “Arizona is the new national hotspot for COVID-19 with more than 4,400 new cases in just the last 72 hours. Per capita, Arizona’s infection rate is now more than three times higher than New York state. It’s spreading like wildfire,” Rep. Greg Stanton tweeted last night.

The big picture: Several states have seen record numbers of new cases over the last few days, including Alabama, Alaska, Arizona, Arkansas, California, Florida, North Carolina, Oklahoma and South CarolinaReuters reports.

  • On Saturday, Texas reported 2,242 coronavirus hospitalizations — a record for the state, per the Houston Chronicle. Health officials are becoming concerned about hospital capacity.
  • Arkansas, North Carolina and Utah also had record numbers of patients enter the hospital on Saturday, per Reuters.
  • South Carolina recorded nearly 800 new coronavirus cases on Sunday, setting another single-day record and raising the state’s seven-day average for the 17th day straight,” the Post and Courier reports.

The bottom line: There’s never been any reason to think that states with mild outbreaks in April weren’t at risk of having a crisis in June, especially states that haven’t taken lockdowns or social distancing as seriously.

  • “This is not the second wave of the pandemic in states like Arizona, Texas, Utah, California, and Florida. Unlike in New York, the first wave never ended in these places,” the Kaiser Family Foundation’s Larry Levitt tweeted.

 

 

 

Public Health Officials Face Wave Of Threats, Pressure Amid Coronavirus Response

Public Health Officials Face Wave Of Threats, Pressure Amid Coronavirus Response

Public health officials face wave of threats, pressure amid ...

Emily Brown was director of the Rio Grande County Public Health Department in Colorado until May 22, when the county commissioners fired her after battling with her over coronavirus restrictions. “They finally were tired of me not going along the line they wanted me to go along,” she says.

Emily Brown was stretched thin.

As the director of the Rio Grande County Public Health Department in rural Colorado, she was working 12- and 14-hour days, struggling to respond to the pandemic with only five full-time employees for more than 11,000 residents. Case counts were rising.

She was already at odds with county commissioners, who were pushing to loosen public health restrictions in late May, against her advice. She had previously clashed with them over data releases and had haggled over a variance regarding reopening businesses.

But she reasoned that standing up for public health principles was worth it, even if she risked losing the job that allowed her to live close to her hometown and help her parents with their farm.

Then came the Facebook post: a photo of her and other health officials with comments about their weight and references to “armed citizens” and “bodies swinging from trees.”

The commissioners had asked her to meet with them the next day. She intended to ask them for more support. Instead, she was fired.

“They finally were tired of me not going along the line they wanted me to go along,” she said.

In the battle against COVID-19, public health workers spread across states, cities and small towns make up an invisible army on the front lines. But that army, which has suffered neglect for decades, is under assault when it’s needed most.

Officials who usually work behind the scenes managing everything from immunizations to water quality inspections have found themselves center stage. Elected officials and members of the public who are frustrated with the lockdowns and safety restrictions have at times turned public health workers into politicized punching bags, battering them with countless angry calls and even physical threats.

On Thursday, Ohio’s state health director, who had armed protesters come to her house, resigned. The health officer for Orange County, California, quit Monday after weeks of criticism and personal threats from residents and other public officials over an order requiring face coverings in public.

As the pressure and scrutiny rise, many more health officials have chosen to leave or been pushed out of their jobs. A review by KHN and The Associated Press finds at least 27 state and local health leaders have resigned, retired or been fired since April across 13 states.

In California, senior health officials from seven counties, including the Orange County officer, have resigned or retired since March 15. Dr. Charity Dean, the second in command at the state Department of Public Health, submitted her resignation June 4.

These officials have left their posts due to a mix of backlash and stressful, nonstop working conditions, all while dealing with chronic staffing and funding shortages.

Some health officials have not been up to the job during the biggest health crisis in a century. Others previously had plans to leave or cited their own health issues.

But Lori Tremmel Freeman, CEO of the National Association of County and City Health Officials, said the majority of what she calls an “alarming” exodus resulted from increasing pressure as states reopen. Three of those 27 were members of her board and well known in the public health community — Rio Grande County’s Brown; Detroit’s senior public health adviser, Dr. Kanzoni Asabigi; and the head of North Carolina’s Gaston County Department of Health and Human Services, Chris Dobbins.

Asabigi’s sudden retirement, considering his stature in the public health community, shocked Freeman. She also was upset to hear about the departure of Dobbins, who was chosen as health director of the year for North Carolina in 2017. Asabigi and Dobbins did not reply to requests for comment.

“They just don’t leave like that,” Freeman said.

Public health officials are “really getting tired of the ongoing pressures and the blame game,” Freeman said. She warned that more departures could be expected in the coming days and weeks as political pressure trickles down from the federal to the state to the local level.

From the beginning of the coronavirus pandemic, federal public health officials have complained of being sidelined or politicized. The Centers for Disease Control and Prevention has been marginalized; a government whistleblower said he faced retaliation because he opposed a White House directive to allow widespread access to the malaria drug hydroxychloroquine as a COVID-19 treatment.

In Hawaii, U.S. Rep. Tulsi Gabbard called on the governor to fire his top public health officials, saying she believed they were too slow on testing, contact tracing and travel restrictions. In Wisconsin, several Republican lawmakers have repeatedly demanded that the state’s health services secretary resign, and the state’s conservative Supreme Court ruled 4-3 that she had exceeded her authority by extending a stay-at-home order.

With the increased public scrutiny, security details — like those seen on a federal level for Dr. Anthony Fauci, the top infectious disease expert — have been assigned to state health leaders, including Georgia’s Dr. Kathleen Toomey after she was threatened. Ohio’s Dr. Amy Acton, who also had a security detail assigned after armed protesters showed up at her home, resigned Thursday.

In Orange County, in late May, nearly a hundred people attended a county supervisors meeting, waiting hours to speak against an order requiring face coverings. One person suggested that the order might make it necessary to invoke Second Amendment rights to bear arms, while another read aloud the home address of the order’s author — the county’s chief health officer, Dr. Nichole Quick — as well as the name of her boyfriend.

Quick, attending by phone, left the meeting. In a statement, the sheriff’s office later said Quick had expressed concern for her safety following “several threatening statements both in public comment and online.” She was given personal protection by the sheriff.

But Monday, after yet another public meeting that included criticism from members of the board of supervisors, Quick resigned. She could not be reached for comment. Earlier, the county’s deputy director of public health services, David Souleles, retired abruptly.

An official in another California county also has been given a security detail, said Kat DeBurgh, the executive director of the Health Officers Association of California, declining to name the county or official because the threats have not been made public.

DeBurgh is worried about the impact these events will have on recruiting people into public health leadership.

“It’s disheartening to see people who disagree with the order go from attacking the order to attacking the officer to questioning their motivation, expertise and patriotism,” said DeBurgh. “That’s not something that should ever happen.”

Many local health leaders, accustomed to relative anonymity as they work to protect the public’s health, have been shocked by the growing threats, said Theresa Anselmo, the executive director of the Colorado Association of Local Public Health Officials.

After polling local health directors across the state at a meeting last month, Anselmo found about 80% said they or their personal property had been threatened since the pandemic began. About 80% also said they’d encountered threats to pull funding from their department or other forms of political pressure.

To Anselmo, the ugly politics and threats are a result of the politicization of the pandemic from the start. So far in Colorado, six top local health officials have retired, resigned or been fired. A handful of state and local health department staff members have left as well, she said.

“It’s just appalling that in this country that spends as much as we do on health care that we’re facing these really difficult ethical dilemmas: Do I stay in my job and risk threats, or do I leave because it’s not worth it?” Anselmo asked.

Some of the online abuse has been going on for years, said Bill Snook, a spokesperson for the health department in Kansas City, Missouri. He has seen instances in which people took a health inspector’s name and made a meme out of it, or said a health worker should be strung up or killed. He said opponents of vaccinations, known as anti-vaxxers, have called staffers “baby killers.”

The pandemic, though, has brought such behavior to another level.

In Ohio, the Delaware General Health District has had two lockdowns since the pandemic began — one after an angry individual came to the health department. Fortunately, the doors were locked, said Dustin Kent, program manager for the department’s residential services unit.

Angry calls over contact tracing continue to pour in, Kent said.

In Colorado, the Tri-County Health Department, which serves Adams, Arapahoe and Douglas counties near Denver, has also been getting hundreds of calls and emails from frustrated citizens, deputy director Jennifer Ludwig said.

Some have been angry their businesses could not open and blamed the health department for depriving them of their livelihood. Others were furious with neighbors who were not wearing masks outside. It’s a constant wave of “confusion and angst and anxiety and anger,” she said.

Then in April and May, rocks were thrown at one of their office’s windows — three separate times. The office was tagged with obscene graffiti. The department also received an email calling members of the department “tyrants,” adding “you’re about to start a hot-shooting … civil war.”  Health department workers decamped to another office.

Although the police determined there was no imminent threat, Ludwig stressed how proud she was of her staff, who weathered the pressure while working round-the-clock.

“It does wear on you, but at the same time we know what we need to do to keep moving to keep our community safe,” she said. “Despite the complaints, the grievances, the threats, the vandalism — the staff have really excelled and stood up.”

The threats didn’t end there, however: Someone asked on the health department’s Facebook page how many people would like to know the home addresses of the Tri-County Health Department leadership. “You want to make this a war??? No problem,” the poster wrote.

Back in Colorado’s Rio Grande County, some members of the community have rallied in support of Brown with public comments and a letter to the editor of a local paper. Meanwhile, COVID-19 case counts have jumped from 14 to 49 as of Wednesday.

Brown is grappling with what she should do next: dive back into another strenuous public health job in a pandemic, or take a moment to recoup?

When she told her 6-year-old son she no longer had a job, he responded: “Good — now you can spend more time with us.”