Powell warns that the US economy may not recover until the end of 2021

category:Finance
 Powell warns that the US economy may not recover until the end of 2021


Reuters reported that countries are now relaxing social control, which increases peoples hope of gradually returning to normal, but also increases the risk of reinfection. The U.S. Congress debated the possibility of further reducing the economic burden, and Powell called for increased fiscal spending.

Powell said more jobs could be lost by June, and the travel and entertainment industries could be under pressure until a vaccine is developed, which will be a long time. The report points out that the economic damage has been very serious. Powell said the unemployment rate could reach 25% before it falls, and GDP could contract at an annual rate of 20% between April and June. This is reminiscent of the Great Depression of the 1930s, although Powell believes that a sustained economic collapse of this magnitude is still unlikely. At the same time, Powell said the Fed and Congress may need to do more to ensure that people can pay their bills. In March, U.S. lawmakers pledged $3 trillion to make up for unemployment and other economic problems related to the outbreak. They are debating whether to do more. The Fed has also approved a series of programs to help businesses and financial markets in an attempt to limit the bankruptcy of individuals and companies. Source: Zhongxin Jingwei editor in charge: Yang bin_nf4368

The report points out that the economic damage has been very serious. Powell said the unemployment rate could reach 25% before it falls, and GDP could contract at an annual rate of 20% between April and June. This is reminiscent of the Great Depression of the 1930s, although Powell believes that a sustained economic collapse of this magnitude is still unlikely.

At the same time, Powell said the Fed and Congress may need to do more to ensure that people can pay their bills. In March, U.S. lawmakers pledged $3 trillion to make up for unemployment and other economic problems related to the outbreak. They are debating whether to do more. The Fed has also approved a series of programs to help businesses and financial markets in an attempt to limit the bankruptcy of individuals and companies.