© Reuters. The President of the Federal Reserve Bank in Minneapolis, Neel Kashkari, is listening to a question during an interview in New York
(Reuters) – The recovery in the US economy from the disruption caused by the novel outbreak of the corona virus is likely to be a "long, hard road" along which some parts of the economy are regularly shut down and restarted, said Neel Kashkari, president of the Federal Reserve Bank in Minneapolis Sunday.
In an interview on CBS's "Face the Nation," Kashkari said the prognoses for a rapid economic turnaround were too optimistic unless treatment for COVID-19, the coronavirus disease, was available in the coming months.
"This could be a long, hard road ahead of us until we get either effective therapy or a vaccine," he said, according to a CBS transcript. "In this scenario, I find it difficult to see a V-shaped recovery."
Kashkari's comments came under the signal from President Donald Trump that he wanted to reopen the economy as soon as possible. Trump said on Friday that he would be launching a new advisory group this week that would focus on the process of economic opening.
Public health experts have warned that the number of deaths in the US in the summer could rise from 21,300 on Sunday to 200,000 if unprecedented home stay orders, shops are closed, and most Americans are kept at home, if they expire at the end of the month.
Kashkari said additional support for small businesses would be needed beyond the $ 350 billion provided under the Corona Virus Aid Package that was approved in March. However, he was optimistic that Congress would approve additional funding.
He added that he was pursuing an 18-month strategy to address the health and economic impact of the pandemic. During this period, certain parts of the economy can be closed and reopened on a rolling basis, starting with workers with the lowest risk of infection.
"We could have these waves of flares, controls, flares, and controls until we actually get therapy or a vaccine," said Kashkari.
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