Until the Federal Reserve prints a vaccine, its unlimited quantitative easing will only benefit the United States stock market and that is it. This means economic growth, consumer spending, and employment will remain depressed until the pharmaceutical industry develops a Coronavirus vaccine.
Does this mean the nation will be under lockdown for an entire year?
You better prepare for it, warns Neel Kashkari, the head of the Federal Reserve Bank of Minneapolis.
He told CBS News on Sunday:
“This could be a long, hard road that we have ahead of us until we get to either an effective therapy or a vaccine. It’s hard for me to see a V-shaped recovery under that scenario.
“We could have these waves of flareups, controls, flareups and controls until we actually get a therapy or a vaccine. We need to find ways of getting the people who are healthy, who are at lower risk back to work and then providing the assistance to those who are most at risk, who are going to need to be quarantined or isolated for the foreseeable future.”
Kashkari has been the one of the least consistent and left-leaning members on the Federal Reserve Board. He is the one that desires to institute social justice policy into monetary policy.
But he may not be wrong in his assessment.
Here is the full interview:
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