Jay Powell warned that United States recovery could happen by the end of 2021

Jay Powell warned that United States recovery could happen by the end of 2021
Jay Powell warned that United States recovery could happen by the end of 2021

Federal Reserve President J. Powell warned that a full economic recovery in the United States could occur by the end of next year and require the development of the Covid-19 vaccine.

“For the economy to fully recover, people have to be confident. And may have to wait for the vaccine to arrive, "Powell told CBS News on Sunday. There will be a complete revival, he said," but it may take a while. . . It could last until the end of next year, we don't really know. "

He said: "Assuming that there is no second wave of coronaviruses, I think they will see the economy recover during the second half of this year."

Powell told CBS that there would be "more months" of net job losses, with unemployment rates of up to 20-25 percent. But he said it was "good news" that the "heavy" people claiming unemployment benefits set themselves temporarily, meaning they expected to return to their old jobs.

US President Donald Trump said last week that he expected the vaccine to be ready by the end of 2020. But public health experts, including Anthony Fauci, director of the US National Institute of Allergy and Infectious Diseases. USA and Rick Bright, recently sacked as head of the US Advanced Biomedical Research and Development Authority. The US warned that the process was likely to take longer.

A high-profile member of Trump's coronovirus task force, D.R.S. Fauci said he expected the vaccines to take at least a year to 18 months. But Dr. Bright said he was very optimistic.

I keep thinking, and my colleagues in the Federal Open Market Committee continue to think that negative interest rates are probably not a suitable or useful policy for us.
Jai pavel

Some world leaders have raised questions about immediate prospects for a vaccine. The Prime Minister of Italy, Giuseppe Conte, said over the weekend that his country "cannot wait for the vaccine", while the Prime Minister of the United Kingdom, Boris Johnson, warned that a vaccine "might not come."

Powell said that while lawmakers "did a lot and did it very quickly," Congress and the Federal Reserve may need to do more "to avoid long-term damage to the economy."

The president of the Federal Reserve said fiscal policies that "help protect companies from futile crises and do the same for individuals" would position the US economy for a stronger recovery after the crisis.

Powell also reiterated his position against the use of negative interest rates, something Trump has asked for. The Fed president told CBS that the Federal Open Market Committee favored "other means" such as forward orientation and quantitative easing to avoid negative interest rates after the last financial crisis.

"I keep thinking and my colleagues on the Federal Open Market Committee continue to think that negative interest rates in the United States are probably not a suitable or useful policy for us," he said.

Anti-crisis measures by the Fed so far have included several programs ranging from zero to provide liquidity, along with key interest rate cuts, leading to a strong rebellion in financial markets in late March. .

But the economic figures remain serious. Unemployment reached a peak of 14.7 percent in the United States in the period after April, with more than 36 million Americans applying for unemployment benefits, as the coronovirus epidemic spread to the world's largest economy for the first time.

The US Congress has already approved nearly $ 3 trillion in financial aid measures aimed at supporting struggling businesses and individuals, but there is a growing consensus in Washington that more fiscal stimulus will be needed, even as Democrats and Republicans Are divided on how to spread it. Money. Federal.

Late Friday, the Democratic-Control House of Representatives approved Nancy Pelosi's $ 3 trillion plan in new stimulus money.

But top Republican Mitch McConnell in the Senate rejected the "Heroes Act" proposal, a 1,815-page bill that includes $ 500 billion for state governments and $ 375 billion for struggling local officials. Balancing the cost increase and decrease in tax revenue due to the epidemic.

Republicans are writing their proposals, including "shielding" responsibility for companies to avoid litigation from workers with coronoviruses while working.

Trump has repeatedly called for the inclusion of payroll tax cuts for the next incentive: social security and Medicare-like rights cuts. Last week, the White House's top economic adviser, Larry Kudlow, suggested that lower corporate taxes and more flexible business regulation should be part of any future aid package.

The Trump administration has taken a more optimistic stance on America's economic recovery than Powell, and White House officials have repeatedly insisted that the economy recover before the end of the year.

Powell told CBS that it was "a reasonable expectation that there would be growth in the second half of the year," but that "we would not return there by the end of the year."

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