New York (News Desk): Jerome H. Powell, the Federal Reserve chair, said that the worst economic numbers are yet to come. He said economy will rebound by the end of 2021 but this will not be possible without a vaccine.
In an interview on 60 Minutes CBS program, Powell warned that lawmakers and the White House may need to do more to support households and businesses if the virus persists.
He said that he expected “a couple more months” of job losses and acknowledged that the unemployment rate, which hit 14.7 percent in April, could reach to 20 or even 25 percent. He is expecting economic contraction at 20 percent to 30 percent on an annual basis.
He said US economy may rebound by the end of 2021 from the biggest shock that “the economy’s had in living memory.”
“This economy will recover; it may take a while,” Mr. Powell said. “It may take a period of time, it could stretch through the end of next year, we really don’t know.” Lockdown left more than 20 million people jobless.
He said economy rebound by the end of 2021 if there will not be a second wavve of coronoviurs. “Assuming that there’s not a second wave of the coronavirus, I think you’ll see the economy recover steadily through the second half of this year,” he said. “For the economy to fully recover, people may have to await the arrival of a vaccine.”