Tags: Coronavirus | jeromepowell | economy | coronavirus

Fed Chief Powell: Economy Might Not Fully Recover Until End of 2021

Fed Chief Powell: Economy Might Not Fully Recover Until End of 2021
Jerome Powell (Getty Images)

By    |   Sunday, 17 May 2020 10:06 PM

It may take until the end of next year for the economy to fully recover from the coronavirus pandemic, Federal Reserve Chairman Jerome Powell told CBS’s  “60 Minutes” on Sunday.

“The parts of the economy that involve people being in the same place very close together, those parts of the economy will be challenged until people feel really safe again,” Powell said, indicating that might not be until a vaccine is widely available.

“Lots of the rest of the economy, though, can move ahead, but we can't fully recover because those other parts of the economy matter,” Powell warned, adding that “in the long run, and even in the medium run, you wouldn't want to bet against the American economy.” 

Powell said the Federal Reserve would continue providing emergency loans and asset purchases, but its unprecedented efforts won't be enough on its own, saying “There was no precedent in post-World War II American history that's even close to what Congress has done, and the question is, will it be enough? And I don't think we know the answer to that.”

The American economy has so far lost more than 21 million jobs during the coronavirus crisis, with the unemployment rate jumping to a post-Great Depression high of 14.7%, according to The Hill.

Powell said the nation’s gross domestic product would contrast at an annualized rate of nearly 30% between April and June, and the unemployment rate go up to nearly 25%, although he stressed “the thing that matters more than anything else is the medical metrics ... the real time economic data that we're seeing is just a function of how successful the social distancing measures are.”

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It may take until the end of next year for the economy to fully recover from the coronavirus pandemic, Federal Reserve Chairman Jerome Powell told CBS's "60 Minutes" on Sunday."The parts of the economy that involve people being in the same place very close together, those...
jeromepowell, economy, coronavirus
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2020-06-17
Sunday, 17 May 2020 10:06 PM
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