Federal Reserve Chairman Jerome Powell says the economy will recover, but it may not “fully recover” by the end of 2020.
“It’s going to take a while for us to get back,” Powell said during an interview on CBS News’ “60 Minutes” on Sunday. “But, I would just say this, in the long run, and even in the medium run, you wouldn’t want to bet against the American economy.”
“This economy will recover. It may take a while, it may take a period of time, it could stretch through the end of next year. We really don’t know,” Powell added.
When asked if a fully recovered economy could happen without a vaccine, Powell said, “Assuming 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.”
However, he said that for the economy to “fully recover” people have to be “fully confident.”
He added, “That may have to await the arrival of an effective vaccine.”
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“In the long run, and even in the medium run, you wouldn't want to bet against the American economy. This economy will recover. It may take a while… It could stretch through the end of next year,” says Fed Chairman Jerome Powell. https://t.co/q3xeeDSdro pic.twitter.com/aSsrzimp4y— 60 Minutes (@60Minutes) May 17, 2020
Last week, Powell urged Congress to pass additional fiscal measures to help the economy, “Additional fiscal support could be costly, but worth it if it helps avoid long-term damage and leaves us with a stronger recovery.”
“There is a growing sense that the recovery may come more slowly than we would like, but it will come. And that may mean that it’s necessary for us to do more,” he added.
Powell’s comments echo those made by members of President Donald Trump’s administration who predict that the economy will begin to see a rebound in the second half of the year.
“Wall Street Journal surveys and so forth, are looking for a very strong second-half economic rebound and suggesting that 2021 next year could be one of the fastest growth rebounds in American history or recent history,” he said.
However, some analysts predict that it could take years for the economy to recover.