Fed Warns of a Financial Recession Due to Another Possible Wave of Covid-19 Outbreak

According to Reuters, citing FT, St. Louis Federal Reserve Bank president James Bullard has warned that a growing number of bankruptcies due to the coronavirus outbreak could lead to a financial crisis.

Fed officials have warned that there might be other waves of coronavirus infections that could lead to horrible results on the economic recovery, causing a new increase in unemployment and a financial recession, according to minutes released Wednesday.

Recently, many US states saw spikes in new cases numbers, leading to halting reopening operations and reimposing restrictions in response.