Coronavirus: Fed chairman Powell warns downturn 'may last until late 2021'

[alp227]

Source: BBC

The chairman of the Federal Reserve says the US economy could "easily" contract by 20-30% amid the pandemic.

Jerome Powell added in a CBS interview that the economic downturn might last until late 2021, and a full rebound may not be happen until a vaccine is found.

However, he expressed confidence the economy would recover, and said he would never bet against the US economy.

Earlier this week, Mr Powell had called on US lawmakers to pass more economic stimulus and relief aid.

Read more: https://www.bbc.com/news/world-us-canada-52701420

[sandensea]

1. The Trump Slump

With a Democrat having to pick up after a Repug, as per usual.

[JDC]

3. And will get all the blame.

[sandensea]

5. That's the worst part, isn't it.

Joe will need all the support he can get - and will have to move fast, before what may be a GOP retake of the House (and possibly Senate) in '22.

I hope I'm wrong about that - but you know how it goes.

[dem4decades]

2. Trump better get this guy under control, he's telling the truth.

[Newest Reality]

4. Wow.

That's optimistic. Rebound? LOL! Yeah, right.

There will be no rebound unless the system is changed drastically during this period. Otherwise, the Wealth Vacuum will just suck up what we have left and leave us without our bootstraps. That gushing upward is really the underlying ethos of the system.

Gush up economics, not trickle down, (well, unless you sit in a urinal in a high-end establishment with your mask on).

We are almost dry here, but there is some gristle and sinew to chew off the bones, and damn, they sure will.

[PatrickforO]

10. Gush up economics. Brilliant!

I'll use that in future.

[C Moon]

6. Well, we'll let Biden be in charge of that.

[appalachiablue]

7. The language: 'downturn' for depression, 'outbreak' for pandemic

[area51]

8. All the more reason for a UBI. n/t

[SunSeeker]

9. At LEAST until 2021. This is looking more like it will be a 5-year slog.

[IronLionZion]

11. We're just 2 months from the longest bull market in history

when markets were at all time highs. And the market is still quite high for the investor class. The WFH crowd has been still getting full salary and benefits. It's mainly the lower income workers being screwed hard during quarantine.

$3.2 Trillion of stimulus went somewhere, but apparently not to laid off workers or even many small business owners. Somebody got that money.

[Wuddles440]

12. Powell's absolute fealty to IL Douche...

is exhibited by the Fed engaging in unprecedented activity such as the purchasing of junk bonds and injecting unlimited liquidity into the financial markets - with no end in sight. He's literally encouraging reckless behavior and a moral hazard for the taxpayers/common citizens. IL Douche believes that a record bull market personifies his "incredible achievements" and ensures his re-election. Powell will do whatever it takes to please him and satisfy his demands. IL Douche has been lobbying for negative rates and I won't be surprised if Powell acquiesces in the near future.

[Politicub]

13. I think he's angling to get congress to release more money to businesses

so they can do stock buybacks and make the market go up. He's a republican (said so during the interview) and we know that the agenda of republicans is greed and making the rich richer.

As my grandmother used to say, I wouldn't trust him as far as I could throw him.

I'm sick of people like him painting these false rosy pictures of rapid recovery when most economists are saying that we'll be reeling from the effects for years.