After rolling out trillions of dollars in support for the U.S. economy during the coronavirus pandemic, Federal Reserve officials have begun warning of potentially lasting scars to the workforce and productivity if the recovery is not handled well.
FILE PHOTO: The Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 27, 2019. REUTERS/Brendan McDermid
Barkin spoke amid a patchwork end to the coronavirus-spurred lockdowns that has seen some states throw open their economies already and others maintain restrictions, while companies and their employees struggle to find the right balance. Workers that remain on the job face risks - meat processing plants have been forced offline due to outbreaks among workers - while companies that do reopen likely face higher costs and fewer customers.
Not only will the unemployment rate spike to catastrophic levels as high as 20% in the coming months, for example, but it will likely remain high until the end of the year or longer, Kaplan said in an interview on Fox Business Network. But that may just be the beginning of a struggle that will require critical policy choices about how and what to reopen, what health protections are needed to keep the virus contained, and how to offset whatever financial or other wounds emerge.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Treasury yields fall ahead of jobless claims as Fed vows to keep rates near zeroU.S. government debt prices were slightly higher on Thursday ahead of fresh weekly jobless claims figures, after the Federal Reserve pledged to keep interest rates close to zero until the U.S. economy is firing on all cylinders.
Read more »
U.S. economy faces hard slog back from pandemic, Fed chief saysThe head of the Federal Reserve on Wednesday dashed lingering hopes for a fast rebound from the coronavirus pandemic, saying the U.S. economy could feel the weight of consumer fear and social distancing for a year or more in a prolonged climb from a deepening hole.
Read more »
Fed support fuels corporate debt spree in AprilIssuance of investment-grade corporate debt in April so far has hit $203.4 billion, slightly below March's record, buoyed by the Federal Reserve's unprecedented intervention into credit markets to blunt the economic effects of the coronavirus pandemic.
Read more »
Fed lending programs may get more funds, but not airlines: Treasury's MnuchinU.S. Treasury Secretary Steven Mnuchin said on Wednesday he is ready to invest more capital in new or expanded Federal Reserve coronavirus rescue lending programs but is not considering more aid to struggling airlines at the moment.
Read more »
Fed chair Powell: Economy may need 'more support' for robust recovery - Business InsiderFed Chair Jerome Powell says the economy may 'need more support' for a robust recovery to be possible
Read more »
Fed chair says this is the worst economy in history'We are going to see economic data for the second quarter that is worse than any data we have seen for the economy,' Fed Chairman Jerome Powell said. 'There are direct consequences of the disease and measures we are taking to protect ourselves from it.'
Read more »