Fed’s Williams: Coronavirus Cases Tests Recovery

The President of the Federal Reserve Bank of New York, John Williams, said on Friday in an interview with the Financial Times that the United States economy is recovering but remains in a deep hole.

“The very large rise in COVID cases recently clearly puts a question mark on the ability of the economy to weather this period.”

“I would expect the growth in the fourth quarter, and maybe into early next year to slow somewhat.”

“Things are looking better, but that’s in the context of an economy that took an enormous hit.”

“Even today unemployment is still very high and we’re still in a deep hole.”

“The reason consumers are still able to spend, the reason the economy is still going, is that we know that people are still having some of the unemployment checks and stimulus checks that they got.”

“That’s giving them the ability to pay the rent, put food on the table.”