Minneapolis Federal Reserve Bank President Neel Kashkari said on Sunday the U.S. economy faces a “long, hard road” to recover from the hard stop implemented to fight the coronavirus outbreak.
He foresees an 18-months process to address the health and economic effects, during which parts of the economy will need to close and re-open on a rolling basis. “We could have these waves of flare-ups, controls, flare-ups and controls until we actually get a therapy or a vaccine,” Kashkari said, noting Congress will likely approve more small business support, beyond the $350 billion provided in March.
While appearing on “Face the Nation,” Kashkari said the economy would not swiftly recover unless a treatment for COVID-19, the disease caused by coronavirus, became available in the next few months.
“This could be a long, hard road that we have ahead of us until we get to either an effective therapy or a vaccine,” he told CBS. “It’s hard for me to see a V-shaped recovery under that scenario.”