“Jerome H. Powell, the Federal Reserve chair, said that the United States would have a slow recovery from what he called the ‘biggest shock that the economy’s had in living memory,’ suggesting that a full rebound from virus-induced lockdowns could take until the end of 2021,” as The New York Times is reporting.
“In an interview on ’60 Minutes,’ the CBS program, Mr. Powell reiterated that both Congress and the central bank may need to do more to help workers and businesses make it through the sudden and sharp slump caused by efforts to contain the coronavirus.
“’This economy will recover; it may take a while,’ Mr. Powell said. ‘It may take a period of time, it could stretch through the end of next year, we really don’t know.’
“The Fed has rushed to insulate the economy as coronavirus lockdowns caused business activity to come to near standstill, leaving more than 20 million people jobless. But it remains an open question whether the central bank’s actions will be sufficient if it takes a long time for the economy to fully reopen, leaving businesses short on income for an extended period and increasing the risk that many will close.”
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