Powell: Fed’s actions to date won’t be the final chapter
Federal Reserve Chairman Jerome Powell said the coronavirus is the largest economic shock in history in remarks prepared for an online discussion with the Peterson Institute for International Economics. FOX Business’ Edward Lawrence with more.
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
Continue Reading Below
Federal Reserve Chairman Jerome Powell issued a grim warning about the U.S. economy's recovery from the coronavirus pandemic: The process could stretch through the end of 2021 — and may hinge on the completion of a successful vaccine.
"This economy will recover…We'll get through this. It may take a while. It may take a period of time. It could stretch through the end of next year," Powell said during a rare televised interview that aired on "60 Minutes" Sunday night. "We really don't know. We hope that it will be shorter than that, but no one really knows."
Although the economy may begin to recover in the second half of 2020 so long as there is not a second wave of the novel coronavirus, Powell said it may not return to pre-crisis levels until a vaccine is delivered as certain sectors like sporting events and theaters struggle to adapt to strict social distancing guidelines.
FED'S POWELL SAYS US ECONOMY MAY NEED MORE POLICY HELP TO AVOID 'PROLONGED' RECESSION
He appeared to push back against the possibility of a so-called "V-shaped" rebound, noting it was "unlikely" the U.S. will bounce back to pre-crisis levels by the end of the year.
"I would say though we're not going to get back to where we were quickly. We won't get back to where we were by the end of the year. That's unlikely to happen," the U.S. central bank chief said, adding: "For the economy to fully recover, people will have to be fully confident. And that may have to await the arrival of a vaccine."
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.