John Williams, president of the Federal Reserve Bank of New York told CNBC Friday that even a swift resolution to the coronavirus pandemic is unlikely to bring a fast recovery to the ailing U.S. economy.
“I don’t see the economy being back to full strength by the end of the year,” he said in the interview. “Even as the pandemic passes, even as the restrictions are relaxed gradually over time, people may take quite a while before they are willing to get back on airplanes, on trains, or go to the theater or go to concerts or things like that.”
William’s comments came as the Federal Reserve Bank of Chicago’s benchmark economic measurement plummeted to recessionary levels in March. With the nation grappling with business closures, skyrocketing unemployment and feeble demand, the central bank’s National Activity Index declined to -4.19 across the four broad segments creating the metric, its lowest level since the financial crisis. Of the 85 economic activity indicators used in the metric, 65 read negative, 18 gained, and two stood neutral.
