Kroger is halting the use of coin change at its stores in response to a shortage caused by the coronavirus pandemic, FOX 19 Cincinnati reports. The Federal Reserve said last month that the pandemic has “significantly disrupted the supply chain and normal circulation patterns for U.S. coin.” “What’s happened is that, with the partial closure of the economy, the flow of coins through the economy has gotten all — it’s kind of stopped,” Federal Reserve Chairman Jerome Powell said during a virtual hearing with the House Financial Services Committee on June 17. “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. So the whole system has kind of, had come to a stop.” The Federal Reserve said in its statement that it is working with the U.S. Mint and Reserve Banks to address the issue through a “strategic allocation of coin inventories” to evenly distribute coins across banks and credit unions. Powell noted that the Federal Reserve expects the coin shortage to be a temporary issue as the country reopens and more Americans begin to spend again. According to FOX 19, the remainder of cash transactions will be applied to Kroger customers’ loyalty cards to be applied toward their next purchase. Customers can also used the funds towards Kroger’s “Round Up” program to support the company’s Zero Hunger/Zero Waster Foundation.
As expected the Federal Reserve raised short-term interest rates by 0.25% and reiterated there will likely be two more increases from the central bank this year. Click here for analysis, market reaction and a press conference with Fed Chief Janet Yellen who detailed the Fed’s newest projections for the U.S. economy, the first since President Trump took office.