May 2020

Federal Reserve Chair Says US Economy Recovery May Begin By Summer

If there is not another wave of COVID-19, Jerome Powell says America could start to return in this year's second half. Jerome Powell, via '60 Minutes' He explains that it is because the collapse was not orchestrated by a housing or bank crisis. Powell added that the economy's recovery process will take a longer time than the downturn. According to the Federal Reserve Chair, it could go on through the end of 2021. In only two months, the pandemic has led to 36 million seeking unemployment benefits. According to the Associated Press, America's 14.7 percent unemployment rate is also expected to rise. Powell says the rate could reach levels not seen since the Great Depression, but adds that banks are in better shape now. For parts of the economy that require groups of people to congregate, Powell notes recovery will be more challenging. In order for normal economic shopping and travel behavior to resume, he explains that a vaccine is needed.