Which will decrease economic activity
Eric Rosengren is president of the Federal Reserve Bank of Boston, more:
- says his baseline is for the pandemic to get worse this fall and winter, decreasing economic activity
- he expects some parts of the country will lock down and consumers will pull back if infections rise
- says weaker growth could extend the time it takes for the Fed to reach 2% inflation target, requiring rates to stay low for longer than anticipated
- says original round of aid would have been fine if pandemic lasted three months but it's lasting much longer and more targeted spending is needed
- says lack of fiscal stimulus could result in more foreclosures and difficulties
- we are very likely to face a credit crunch toward the end of this year if banks come under stress from commercial real estate loans
Headlines via Reuters, any bolding is mine.
Fall, winter .... here's one way to keep warm regardless
