Federal Reserve Chairman Jerome Powell was interviewed on 60 Minutes. The highlights are:
(1) We have the tools to avoid the risk of long run damage by supporting households and businesses to avoid insolvencies over 3 – 6 months.
(2) The Federal Reserve by lending and Congress by spending may have to do more ($3 trillion)
(3) If employees are out of work for long periods their skills will atrophy
(4) The economy will be on the road to recovery in the second half of the year
(5) We should expand unemployment insurance beyond its expiration date
(6) We should deal with the problem of how to pay for the debt after the economy is strong once again
(7) The economy will recover through the end of 2021 assuming there is not a second wave of the coronavirus
(8) The economy will not be fully recovered until people are confident to return to their previous activities — when we have a vaccine.
(9)This will not likely be a another Great Depression since we had a strong economy before and the Central Banks around the world are providing the necessary liquidity. This is a sharp downturn but will be shorter in duration vs. the 1930’s
(10) We will get through this. The U.S. is the home of great technology.