Fed Chair Jay Powell can’t be popular on the party circuit in Washington, D.C. right now. The man is a walking font of bad news.
During his first day of regular testimony to Congress, Powell noted that recent, very ugly GDP forecasts by the Fed probably don’t factor in a potential second wave of coronavirus infections later this year, which would make things worse.
At their meeting last week, the 17 central bankers estimated GDP would fall a whopping 6.5% this year, which is more than twice as far as it fell during the Great Financial Crisis.
Senator Krysten Sinema (D-AZ) asked Powell:
“Does this projection assume a potential second wave of coronavirus and the accompanying economic impacts?”
“I would think the answer to your question, though, largely will be that … my colleagues will not principally have assumed that there will be a substantial second wave.”
Channeling most everyone in America, Sinema replied:
“Oh, that’s concerning.”
Hold onto your wallets. This economy is going to see some rough times.