Fed Chairman Powell made the assessment that the economic recovery could extend until the end of next year due to the Kovid-19 outbreak.
US Federal Reserve (Fed) Chairman Jerome Powell said that the question of when the economic recovery will occur is difficult to answer and largely depends on the developments in the new type of coronavirus (Kovid-19) outbreak.
“The sooner we get the virus under control, the sooner businesses open,” Fed Chairman Powell said. found the assessment.
Stating that the recovery will begin with the reopening of businesses and people returning to their jobs in the coming months, Powell stated that the biggest thing to avoid in this process is the second wave of the virus epidemic.
“I think if there is no second wave in the coronavirus, you will see the economy recover steadily as of the second half of this year.” said.
“IT MAY BE NECESSARY TO WAIT FOR THE VACCINE TO RECOVER THE ECONOMY FULLY”
Stating that he thinks that people will be careful in their spending behavior and that some areas of the economy will recover much more slowly, Powell said, “For the economy to recover completely, people’s confidence will have to be fully restored. For this, it may be necessary to wait for the vaccine to be released.” he spoke.
Pointing out that the timing for the vaccine is uncertain, Powell stated that they hope it will come out as soon as possible and that the economy will be difficult until people feel safe.
Describing this process as “a time of great pain and hardship,” Powell said that only in the long or even medium term the American economy will recover and people will return to their jobs. “It might take a while. It could take until the end of next year. We really don’t know. We hope it will happen sooner than that, but nobody really knows,” Powell said. he spoke.
Evaluating the increasing unemployment rate in the country due to Kovid-19, Powell noted that layoffs will likely increase in May and next month.
Powell stated that economic activity will decrease significantly in the second quarter of this year and expressed that he expects economic growth in the second half of the year.
Referring to the economic stimulus packages implemented within the scope of combating the economic effects of the Kovid-19 epidemic, Powell stated that the Fed and the US Congress may need to do more to support the economy.