Federal Reserve Chairman Jerome Powell warned Tuesday that a second wave of coronavirus infections would damage confidence and undermine the economy.
“I certainly wouldn’t forecast that [a second wave], and so hypothetically a second outbreak could force government and force people to withdraw again from economic activity, and I think the worst part of it would be to undermine public confidence, which is what we need to get back to lots of economic activity,” he told the House Financial Services Committee during a hearing on the government’s response to the pandemic.
Powell’s response comes as cities across the country have either paused or stepped back on reopening their economies because of spikes in virus infections.
Republican Arizona Gov. Doug Ducey on Monday ordered bars, gyms, movie theaters, and water parks in his state to shut down for at least 30 days. These institutions were allowed to reopen in the middle of May, but an increase in virus cases prompted the governor to shut them down again.
In Houston, healthcare professionals have urged residents to remain at home, wear masks, and cancel gatherings. Residents of Harris County, home to Houston, received an emergency alert on their phones to remain at home as virus infections have spiked.
