Federal Reserve chair Jay Powell has warned that the US economy may not “fully recover” until there is a vaccine for Covid-19, and possibly not until the end of 2021.
“Assuming there is not a second wave of the coronavirus, I think you will see the economy recover steadily through the second half of this year,” Mr Powell told CBS News in an interview that aired on Sunday. “So, for the economy to fully recover, people will have to be fully confident. And that may have to await the arrival of a vaccine.”
Mr Powell said the economy would eventually recover, but “it may take a while . . . it could stretch through the end of next year, we really don’t know”.