Rosengren: Controlling Virus Helps in Managing Debt

Economic recovery in the United States is largely dependent on the situation of the COVID-19 Pandemic, according to the President of the Federal Reserve Bank of Boston, Eric Rosengren.

Rosengren expects consumer spending to remain weak as the economy struggles with the pandemic, Reuters reported.

“I would say that taking strong fiscal action and taking very few public health actions is completely the wrong mix.”

“The forecast for the U.S. economy this fall is quite uncertain, but my view is that the recent slowdown in economic activity that we have seen in high-frequency data is likely to continue.”

“Limited or inconsistent efforts by states to control the virus based on public health guidance are not only placing citizens at unnecessary risk of severe illness and possible death, but are also likely to prolong the economic downturn.”

“If you want to actually make sure that the debt doesn’t explode, you have to make sure that we get the pandemic under control.”