Federal Reserve Chairman Jerome Powell said the U.S. economy might not “fully recover” without a coronavirus vaccine.
In an excerpt from CBS’s 60 Minutes on Sunday, Powell expressed confidence in an economic recovery but said the nation might face a tricky timeline on bouncing back from the fallout brought by the coronavirus pandemic.
“It’s going to take a while for us to get back,” he said.
If a second wave of the coronavirus doesn’t hit, Powell said he expects a steady recovery throughout the second half of the year. But without a vaccine, he doesn’t think there will be full consumer confidence for a total recovery.
“For the economy to fully recover, people will have to be fully confident, and that may have to await the arrival of a vaccine,” he said.
The nation’s unemployment rate hit nearly 15% in the latest jobs report, which is the highest it’s been since the Great Depression.
The closure of many businesses has left millions of U.S. workers unemployed or furloughed, prompting action from the federal government. Earlier this year, $1,200 stimulus checks were distributed to qualifying people and families to help boost the economy and aid in the sudden loss of household revenue.
“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,” Powell said.
Despite uncertainty on when the country can start seeing signs of recovery, the chairman remained hopeful that the economy will eventually bounce back.
“You wouldn’t want to bet against the American economy,” Powell said. “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.”
