The Fed Expects Changes In The Economy Due To The Pandemic

The Fed Expects Changes In The Economy Due To The Pandemic

An increase in the number of confirmed cases of coronavirus across the US could, according to the head of the US central bank Jerome Powell, could slow down the economy in the coming months by discouraging consumers from spending. "We are witnessing states beginning to apply restrictions on certain activities," said the head of the US Federal Reserve (Fed). "There are fears that people will lose confidence in trying to control the pandemic and ... we can already see that it is manifesting itself," he added. According to the head of the Fed, this threat means that Congress and the White House should provide additional incentives to support the unemployed, states and cities and small businesses in order to prevent the economic downturn. "For a long, very long time, there was no greater need to do that," he said. At the same time, Powell noted that although the economy will recover completely, probably after the distribution of the vaccine, some sectors may remain weaker than they were before the pandemic. This could force many of the unemployed to look for work in a new company or in a completely different industry. The transition is also likely to require government support, the Fed chief said. "We will not return to the same economy, we will return to a different economy," he said.