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Top Fed official says quick reopenings damaged recovery from coronavirus [View all]
The Hill
August 12, 2020 - 03:20 PM EDT
A top Federal Reserve official said Wednesday that the inability of the U.S. to control the coronavirus pandemic limited the benefit of trillions in fiscal stimulus approved by President Trump and Congress earlier this year.
Eric Rosengren, president of the Federal Reserve Bank of Boston, said in a Wednesday interview with The Hill that the abrupt peel-back of restrictions imposed to slow the pandemic in the U.S. prevented record-breaking economic rescue efforts from fostering a quick recovery.
"Normally with the kind of stimulus that we've seen with both fiscal policy and monetary policy, you'd actually expect a V-shaped recovery," Rosengren said, referring to an immediate economic recovery from a downturn of similar speed and scale.
"The reason we're not seeing a V-shaped recovery and that we're seeing a pause right now is that it's very hard for fiscal or monetary policy to offset a public health concern," he continued.
Eric Rosengren, president of the Federal Reserve Bank of Boston, said in a Wednesday interview with The Hill that the abrupt peel-back of restrictions imposed to slow the pandemic in the U.S. prevented record-breaking economic rescue efforts from fostering a quick recovery.
"Normally with the kind of stimulus that we've seen with both fiscal policy and monetary policy, you'd actually expect a V-shaped recovery," Rosengren said, referring to an immediate economic recovery from a downturn of similar speed and scale.
"The reason we're not seeing a V-shaped recovery and that we're seeing a pause right now is that it's very hard for fiscal or monetary policy to offset a public health concern," he continued.
Read more: https://thehill.com/policy/finance/511715-top-fed-official-says-quick-reopenings-damaged-recovery-from-coronavirus?amp
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