Fed’s Kashkari: US economy faces 'long, hard road' to recover from coronavirus

Early Monday morning in Asia, Reuters came out with the downbeat comments from the Minneapolis Federal Reserve Bank President Neel Kashkari. The Fed policymaker crossed wires while appearing on CBS’s “Face the Nation”.

Key quotes

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 flare-ups, controls, flare-ups and controls until we actually get a therapy or a vaccine.

Public health experts have warned that the U.S. death toll could surge to 200,000 over the summer, from 21,300 on Sunday, if unprecedented stay-at-home orders that have closed businesses and kept most Americans indoors are lifted when they expire at the end of the month.

Kashkari said additional support was needed for small businesses beyond the $350 billion provided in the coronavirus aid package passed in March, but he was optimistic that Congress would approve more funding.

He added that he was looking toward an 18-month strategy to address the health and economic effects of the pandemic. During that time, certain parts of the economy may close and re-open on a rolling basis, starting with workers who are at lowest risk of infection.

FX implications

Dull markets, due to the Easter Monday, restrict the news implications while fears concerning the coronavirus (COVID-19) outbreak in the US keep weighing on the US dollar. Even so, the USD/JPY pair, mostly known as the risk gauge, seesaws around 108.50 by the press time.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.