St. Louis Fed President James Bullard said yesterday that the he “definitely don’t think we’re out of the woods”, from the coronavirus crisis. The US is still at a high, high risk level here,” he warned, “Any crisis, I think you have to keep in mind that many things can happen – many twists and turns can occur.””If you get massive business failures, you’ll face depression risk or financial crisis risk or both,” Bullard said. “And we want to stay out of those situations,”
Minneapolis Fed President Neel Kashkari said yesterday that “economic recovery is likely to be bumpy and it’s going to be more muted.” “My base-case scenario is that we are going to continue to see peaks, second waves, etcetera, unfortunately, for the rest of the year, until we get to some form of effective therapy or some form of vaccine or very, very widespread testing, and we are not there yet,” he added.
