Fed Chairman Powell: Recovery will take some time and may not happen without a vaccine

According to Jerome Powell, Chairman of the Federal Reserve System (the central bank of the United States), recovery of American economy may happen next year. A full recovery may depend on coronavirus vaccine.


Economy will rebound, but it may take some time. The recovery may last until the end of next year. “We really don’t know,” Powell said in an interview with American TV CBS on Sunday. “Assuming there’s no second wave of the pandemic, economy could begin to recover through the second half of the year,” he added.

However, Powell believes it’s important to have a coronavirus vaccine ready by that time. “You wouldn’t want to bet against the American economy neither in the the long run nor in the medium run,” Powell said referring to the fact that outlook on American recovery remains uncertain.

Powell mentioned some current Fed numbers connected to labor market. Around 40% of Americans earning less than $40,000 a year have lost their jobs due to coronavirus. The Fed Chair has welcomed the economic stimulus of $3 trillion approved Congress.


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