The American economy has a long way to go to recover from the catastrophic fallout from the coronavirus pandemic.
This statement was made by the head of the US Federal Reserve, Jerome Powell, in an interview with National Public Radio.
According to him, the Fed will have to keep the base interest rate low for many years. This suggests that the US economic recovery will be long and problematic.
“We believe that a low interest rate that encourages economic activity will be required over an extended period,” the official said, adding that “it could take years.”
While the United States labor market has shown some positive trends, Powell said, the country’s economy will have a long way to go to recover. Moreover, he warned that the future will only get harder.
“The recovery will continue, and we really believe it will be harder further,” the official explains. “In a sense, it will be difficult for [US residents] to find work, because certain sectors of the economy will take longer to recover.”
Recall that against the backdrop of the coronavirus pandemic, the Fed decided to reduce the interest rate to 0-0.25% per annum. At a meeting in late July, it was decided to keep it at the same level. The next meeting of the American regulator is expected in mid-September.