Nov. 17, 2020-Despite recent optimism about the prospects for an economic recovery in the United States, the COVID-19 pandemic still poses a significant threat to the economy, Federal Reserve Board Chairman Jerome Powell warned on Tuesday.
“We are not going back to the same economy,” Powell said.
In a video call with the Bay Area Business Council, Powell said that even under the best-case scenario with a vaccine distribution, the effect of the virus is likely to have a significant impact on the near-term economy.
News from biotech firm Moderna yesterday and pharmaceutical Pfizer last week that their vaccine trials are succeeding boosted enthusiasm among market-watchers for a quick economic recovery.
But as the number of people with the COVID-19 rises and hospitalizations increase, the public is once again retreating from public places.
The longer the threat of the virus continues, the greater the likely impact on the economy. Powell said he is concerned about the potential that many small businesses won’t survive. He also raised concerns about the long-term impact that unemployment poses to the labor market.
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