Fed’s Rosengren: Economy Facing Weakness Risk in Coming Months

The United State economy is facing the risk of significant weakness during the coming months until Coronavirus vaccines are distributed, said the President of the Federal Reserve Bank of Boston, Eric Rosengren.

“I am expecting that the labor market is going to be stagnant for the next couple months until we have much more widespread vaccinations,” Rosengren said in an interview with Reuters on Wednesday.

Moreover, the sectors that were hard hit by the pandemic, such as hotels, restaurants, and entertainment, are in need of more stimulus until customers return to the pre-crisis levels, he added.

 “As we get into the end of the second quarter, I’m hoping enough people are vaccinated that we can start spending, particularly in those areas where we haven’t been able to spend.”

Furthermore, Rosengren noted that a fiscal program that offers grants to struggling businesses could be an effective tool in supporting small businesses amid the pandemic.