Fed Chairman warns of "highly uncertain" outlook for US economic recovery
Xinhua News Agency, Washington, June 30 (Reporter Xu Yuan Gao Pan) US Federal Reserve Chairman Powell said on June 30 that the prospect of US economic recovery is "highly uncertain" and will largely depend on the control of the COVID-19 epidemic. And the policy support provided by the government when necessary.
When Powell attended the hearing of the Financial Services Committee of the US House of Representatives that day, the COVID-19 epidemic situation and the suppression measures led to a sharp decline in economic activity. In the second quarter, the actual GDP of the United States may be the largest decline since a record. As the economy reopens, the recently released economic data is showing positive signs. But overall, output and employment are still far below pre-epidemic levels, and the outlook for economic recovery is "highly uncertain."
Powell reiterated that controlling the epidemic is critical to economic recovery, and it is unlikely that the US economy will fully recover until people are convinced of the safety of re-engaging in a wide range of activities. However, the infection rate of the new coronavirus in the United States has soared again recently, and some regions have regained the necessary blockade measures. There are signs that the epidemic in the United States may last longer than expected, bringing new challenges to economic recovery.
Powell also warned that in order to ensure a sustained economic recovery, any form of economic stimulus measures should not be stopped prematurely.
The US Department of Commerce data shows that the US economy contracted by 5% in the first quarter of this year due to the COVID-19 epidemic situation and control measures. In the latest issue of the World Economic Outlook, the International Monetary Fund predicts that the US economy will shrink by 8% this year.