Fed’s Powell Expects Slow Recovery from Lockdown
Federal Reserve chairman Jerome Powell said the U.S. would see a slow recovery from what he called the “biggest shock that the economy’s had in living memory,” and a full rebound from virus-induced lockdowns could take until the end of 2021.
In an interview on “60 Minutes,” Powell reiterated that both Congress and the Fed may need to do more to help workers and businesses make it through the sudden and sharp slump.
Asked whether the economy could heal without an effective vaccine, Powell said activity could restart before a treatment became available without making a complete rebound.
“Assuming that there’s not a second wave of the coronavirus, I think you’ll see the economy recover steadily through the second half of this year,” he said. “For the economy to fully recover, people will have to be fully confident, and that may have to await the arrival of a vaccine.”
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