Fed’s Rosengren: Recovery to Be Slower than Expected

It could take the US economy longer than previously expected to recover from the COVID-19 crisis, said the President of the Boston Federal Reserve Bank, Eric Rosengren, according to Reuters.

In addition, Rosengren believes that demand for the Federal Reserve’s Main Street lending program would grow over time.

“There are actually a lot of companies that have been badly disrupted by the pandemic. I do expect unfortunately that the economy is going to remain weaker than many had hoped through the summer and fall and this will be an important way to make sure that firms don’t close.”

The Federal Reserve Bank of Boston recently said that Main Street Lending Program, which aims to support small and mid-sized businesses (SMBs), is now operational and ready to purchase eligible loans.