Boston Fed President Eric Rosengren said in an interview that “labor market is going to be stagnant for the next couple months until we have much more widespread vaccinations.” But going into Q2, ” I’m hoping enough people are vaccinated that we can start spending, particularly in those areas where we haven’t been able to spend,” he added.
Some sectors are most impacted by the coronavirus pandemic, including accommodation, food and entertainment. Rosengren said they will need more fiscal support, until vaccines make it possible for consumers to return. In particular, a fiscal program that provides grants to struggling businesses maybe one of the most effective ways to support mid-sized companies.
