Why do U.S. coins seem to be in short supply according to The Federal Reserve
Business and bank closures associated with the COVID-19 pandemic have significantly disrupted the supply chain and normal circulation patterns for U.S. coins. While there is an adequate overall amount of coins in the economy, the slowed pace of circulation has reduced available inventories in some areas of the country.
The Federal Reserve is working with the U.S. Mint and others in the industry on solutions. As a first step, a temporary cap was imposed on the orders depository institutions place for coins with the Federal Reserve to ensure that the current supply is fairly distributed. In addition, a U.S. Coin Task Force was formed to identify, implement, and promote actions to address disruptions to coin circulation.
Since mid-June, the U.S. Mint has been operating at full production capacity, minting almost 1.6 billion coins in June and is on track to mint 1.65 billion coins per month for the remainder of the year.
As the economy recovers and businesses reopen, more coins will flow back into retail and banking channels and eventually into the Federal Reserve, which should allow for the rebuilding of coin inventories.
Another Opinion on why U.S. coins are in short supply
The media’s explanations for the coin shortage are so ludicrous that even TV watchers are starting to ask questions, late in the game though they are, and muzzled to boot. The truth is that the kink in the distribution chain is being caused by the Federal Reserve, as is clear from congressional testimony–though notably the Fed Chair himself brought nothing but nonsense, archaic jargon and obfuscation to that hearing. In any case, the Fed’s wholesale takeover of the U.S. continues apace, evidently intent on leaving no penny unturned.
U.S. Mint Public Service Announcement
The impact of COVID-19 has resulted in the disruption of the supply channels of circulating coinage – the pennies, nickels, dimes, and quarters that the American people and businesses use in their day-to-day transactions. Listen to this public service announcement from Mint Director David J. Ryder about how to #GetCoinMoving again.
Coinstar CEO on America’s coin shortage amid the pandemic
CNBC’s Ylan Mui breaks down why the U.S. is seeing a coin shortage. Coinstar CEO Jim Gaherity joins to discuss.
Fed chair Jerome Powell: Coronavirus caused a temporary coin shortage
Federal Reserve Chairman Jerome Powell answers questions from the House Financial Services committee.