According to the President of the Federal Reserve Bank of San Francisco, Mary Daley, even in the best case scenario, the US economy will need time to recover from the coronavirus-related crisis. She expressed this point of view in an interview that she gave to The Wall Street Journal.
“I do not expect a V-shaped recovery, I expect something more like neighborhoods with negative growth throughout 2020, and then a gradual return to positive growth in 2021,” said the head of the Federal Reserve Bank of San Francisco.
The slow economic recovery will be partly due to the fact that it will take time to relax government restrictions and persuade people to go out. However, if the coronavirus pandemic turns out to be longer, economic recovery may take even longer, Mary Daly warned.
Recall, on the eve of the President of the Federal Reserve Bank of St. Louis, James Bullard, said that the US economy will confidently recover in the second half if the government and business take decisive measures in response to the pandemic. There is no reason to prevent a V-bounce, Bullard said on Tuesday.
On this topic:
US economy to shrink by 40% and unemployment rise to 20% – JPMorgan
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