Jerome Powell, chairman of the Federal Reserve, told Scott Pelley the American economy will rebound from the unprecedented downturn caused by the coronavirus outbreak. The Fed chair said recovery may take more than a year, no one knows for sure, but he believes the recovery could start as early as the second part of this year.
In an excerpt that aired on "Face the Nation," Pelley asked Powell what economic reality the American people need to be prepared for.
"Well, I would take a more optimistic cut at that, if I could," Powell said. "And that is — this is a time of great suffering and difficulty. And it's come on us so quickly and with such force, that you really can't put into words the pain people are feeling and the uncertainty they're realizing. And it's going to take a while for us to get back. But I would just say this. In the long run, and even in the medium run, you wouldn't want to bet against the American economy. This economy will recover. It may take a while. It may take a period of time. It could stretch through the end of next year. We really don't know."
"Can there be a recovery without a reasonably effective vaccine?" Pelley asked.
"Assuming there's not a second wave of the coronavirus, I think you'll see the economy recover steadily through the second half of this year," Powell said. "So, for the economy to fully recover, people will have to be fully confident. And that may have to await the arrival of a vaccine."
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