The Fed chief’s comments suggest the U.S. economy could face a rocky path for at least the next year as it attempts to rebuild.
President Donald Trump is hoping the economy will bounce back rapidly from the coronavirus shutdown, but Federal Reserve Chair Jerome Powell warned Wednesday that it will take time for the country’s wounds to heal even after businesses begin to reopen.
After the Fed pledged to keep interest rates near zero until the economy has weathered the pandemic, Powell underscored the bleak reality, saying next week’s monthly jobs report is expected to show an unemployment rate somewhere in the double digits.
“We’re going to see economic data for the second quarter that’s worse than any data we’ve seen for the economy,” he said during a news conference. Continue reading.