Fed Leaders See Slow and Uneven Recovery
The U.S. economy could start to recover in the second half of 2020 after what’s shaping up to be the worst recession in decades. However, Reuters quoted several top policymakers at the Federal Reserve as concluding that growth is likely to be slow and uneven.
“We’re living through the most severe contraction in activity and surge in unemployment that we’ve seen in our lifetimes,” Fed vice chair Richard Clarida told CNBC. “Unfortunately, the unemployment rate is going to surge to numbers that we’ve not seen probably since the 1940s.”
In terms of the recovery, “There are lots of different possibilities,” said Atlanta Fed President Raphael Bostic. “In many communities the ‘V’ recovery is going to be very difficult to achieve.”
Chicago Fed President Charles Evans said it’s “reasonable” to expect a return to economic growth in the second half of the year, but noted that he viewed efforts to reopen the economy, even as the coronavirus pandemic continues, to be a “bold decision with pretty high risks.” He added that “the pickup in activity will likely be slow at first.”
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