(Reuters) – Top U.S. and European central bankers on Tuesday called for renewed government spending to support families and businesses as the battle against the coronavirus-triggered recession enters a newly critical phase.

FILE PHOTO: Federal Reserve Board Chairman Jerome Powell testifies during a Senate’s Committee on Banking, Housing, and Urban Affairs hearing examining the quarterly CARES Act report to Congress, in Washington, DC, U.S., September 24, 2020. Drew Angerer/Pool via REUTERS

Hopes for new fiscal support in the United States, however, were dealt a serious blow when President Donald Trump abruptly canceled ongoing negotiations with Democrats in the U.S. House of Representatives.

The growth in new COVID-19 cases is again accelerating in parts of the United States and Europe, raising the prospect of new restrictions on commerce even as whole industries and millions of households are still reeling from those imposed in the spring during the first viral wave, and local governments struggle to make up for lost tax revenue.

Those health risks and the possibility of a long “slog” of slow economic growth and elevated joblessness means a “recessionary dynamic” could still take hold in which weak growth feeds on itself through successive rounds of layoffs and business failures, Federal Reserve Chair Jerome Powell told a business conference.

Early action last spring by the U.S. central bank and the passage by Congress of legislation providing trillions of dollars in direct aid to companies and families has prevented the worst outcomes “so far,” Powell said.

But “the expansion is still far from complete,” and if U.S. officials grow stingy about further help it “would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said, while in contrast “the risks of overdoing it seem, for now, to be smaller. Even if policy

WASHINGTON (Reuters) – The world’s top central bankers have opened the taps with trillions of dollars in promised credit to prevent a global pandemic from causing a global economic depression.

On Tuesday they will update their plans in presentations that could begin to signal just how much more they feel they can do in response to a once-in-a-century economic shock triggered by the spread of the coronavirus.

Despite the efforts made so far, the global economy is not out of the woods given the unique risks posed by the health crisis, and top officials from the Federal Reserve, European Central Bank and Bank of Japan are likely to acknowledge as much when they speak Tuesday at a virtual meeting of the National Association for Business Economics.

“We know monetary policy is pedal to the metal,” Chris Varvares, co-head of U.S. economics for IHS Markit’s Macroeconomic Advisers, said at a NABE panel on the global economy on Monday. But “the disease is the boss…We are really having trouble tamping this down to low levels that will allow the economy to fully recover.”

Powell speaks at 10:40 EDT (1440 GMT), ECB executive board member Philip Lane at 11:30 (1530 GMT), and Bank of Japan Governor Haruhiko Kuroda on Tuesday evening at 7 p.m (2300 GMT).

For all three, their remarks will be framed by separate debates underway among elected leaders in the United States, Europe and Japan over the need for more stimulus.

With interest rates already at zero – and global demand still weak, millions unemployed and private incomes falling – central bankers and economists say the most effective response would be from fiscal authorities able through unemployment insurance or other existing programs to send money directly to households.

“This is a natural role (for fiscal policy)…when there is not enough

Food delivery services have been among the winners of the coronavirus lockdown, as large swathes of the economy ground to a halt. Photo: David Cliff/NurPhoto via Getty Images
Food delivery services have been among the winners of the coronavirus lockdown, as large swathes of the economy ground to a halt. Photo: David Cliff/NurPhoto via Getty Images

Deliveroo is in the process of formalising plans for its London initial public offering (IPO), and has appointed investment bankers to underwrite it.

Goldman Sachs (GS) has taken up the challenge, according to reports by Sky News this morning. The float could raise more than £2bn ($2.6bn), and would take place in 2021.

Other banks are expected to be appointed in the coming months, the report said.

Rumours of listing talks were circulating in the last week of September, as Bloomberg reported people familiar with the matter had said discussions were in their preliminary stages.

Food delivery services have been among the winners of the coronavirus lockdown, as large swathes of the economy ground to a halt.

Although Deliveroo initially struggled under lockdown, it was boosted as the year went on, as customers avoided supermarkets, instead opting to order in food and groceries.

In August, investment from Amazon (AMZN) was cleared by regulators after a competition probe that lasted almost a year. It froze the majority of Amazon’s cash injection.

The CMA said in a statement on Friday 17 April that the decision was made “in light of a deterioration in Deliveroo’s financial position as a result of coronavirus (COVID-19).”

While the extent of Amazon’s stake has not been publicly disclosed, it was the lead investor in a $575m funding round announced by Deliveroo in May last year.

Investors in the company include T Rowe Price (TROW), Fidelity Management and Greenoaks Capital.

A spokesperson for Deliveroo declined to comment on the appointment.

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The company was valued at