Minneapolis Fed President Neel Kashkari said on Sunday, economic recovery will likely to be “slow” and “gradual”. “The virus continues to spread. And when we look around the world, there is evidence that when countries relax their economic controls, the virus tends to flare back up again,” he said. “The longer this goes on, unfortunately, the more gradual the recovery is likely to be.”
A robust recovery “would require a breakthrough in vaccines, a breakthrough in widespread testing, a breakthrough in therapies to give all of us confidence that it is safe to go back.” He expected the coronavirus pandemic to go on in phases for the next year or two.
He also warned, “the worst is yet to come on the job front, unfortunately,” referring to the historic job data released last week. “It’s really around 23, 24% of people who are out of work today,” he added. “Congress is going to need to continue to give assistance to workers who’ve lost their jobs,” he said.