Fed's Powell says US economy is entering bounce-back still clouded by 'significant uncertainty'
Despite his slightly hopeful outlook, Powell noted in his opening statement that the US remains mired in uncertainty. Rising coronavirus case counts throughout the country threaten to derail reopenings, and little is known about when an effective COVID-19 treatment could be marketed. Even if the virus is contained and the economy fully reopens, some industries will"struggle" to return to pre-pandemic levels of activity due to consumer fears and lasting damage, Powell said.
"The levels of output and employment remain far below their pre-pandemic levels, and significant uncertainty remains about the timing and strength of the recovery," he said."Until the public is confident that the disease is contained, a full recovery is unlikely."Bernstein says buy these 7 stocks that are unfairly beaten-down and built for explosive gains in the future
The chairman also warned that a prolonged downturn would disproportionately harm low-income workers, women, and minorities. The slump"could further widen gaps in economic well-being that the long expansion had made some progress closing," Powell said. In more pointed remarks, the chair condemned racism and referenced the current protests against racial inequality and police brutality.
"I speak for my colleagues throughout the Federal Reserve System when I say, there is no place at the Federal Reserve for racism and there should be no place for it in our society. Everyone deserves the opportunity to participate fully in our society and in our economy," Powell said.
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