Powell, Fed Chair, "It May Take a Year for Economic Recovery"

Expected L-Shaped Recovery Instead of V-Shaped Economic Recovery

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), predicted that the U.S. economic recovery may require at least one year or more.

On the 17th (local time), CBS in the U.S. introduced part of an interview with Chairman Powell scheduled to air that evening on the program '60 Minutes.'

Chairman Powell explained, "It seems it will take a considerable amount of time to return to the past," adding, "The economy will recover, but it will take quite some time. The recovery period could continue until the end of next year. We do not know anything for sure."

Powell's remarks were recorded on the 14th. Compared to his virtual speech hosted by the Peterson Institute for International Economics (PIIE) that morning, where he said a significant period is needed for economic recovery, this interview provided a somewhat more specific recovery timeline.

Chairman Powell further predicted, "Assuming there is no second wave, the U.S. economy will recover steadily in the second half of the year." However, he also forecasted, "For the economy to fully recover, people will be waiting for the development of a vaccine."

Powell's comments on this day suggested an expectation of an L-shaped economic recovery rather than a rapid V-shaped rebound.

He continued, "This is a time of great pain and difficulty. The pain and uncertainty people feel are beyond words. It happened so quickly and abruptly," but emphasized, "In the long term, or even the medium term, I do not think you would bet on the U.S. economy collapsing."