This is going to hurt for a long time, or at least that’s the message from New York Federal Reserve Bank President John Williams. When talking about the U.S. economic recovery, he pointed out that it could be years before we’re back at full strength. The recent outbreaks of the virus are taking their toll, setting us back.
Williams suggested we might be passed the low point, given recent increases in building permits and rising consumer spending, but manufacturing and small businesses were walloped, and that will take time to heal.
“People have been getting back to work and the unemployment rate has started to edge down. Although this improvement is welcome, the economy is still far from healthy and a full recovery will likely take years to achieve.”
But don’t worry, the Fed has a plan. It will continue to buy bonds of all kinds, keeping interest rates exceptionally low, which makes it cheap for the U.S. government and others to borrow but punishes savers by denying them the interest they would have earned.
So if you’re a saver, just think of all that money you won’t get as your contribution to the health of the nation.