The U.S. economy will recover from the devastating effects of the COVID-19 pandemic, but the process could stretch until the end of 2021 and depend on the development of a vaccine, said Federal Reserve Chairman Jerome Powell.
In another interview with CBS's Sunday night "60 Minutes" news program, Powell said the most important data for the US economy right now are the "medical metrics" around the coronavirus pandemic. "We really don't know". "We hope that it will be shorter than that, but no one really knows".
The US has already green-lit almost $3 trillion in new stimulus spending, with the Fed also taking radical steps to shore up the economy, pumping trillions of dollars into the financial system.
Under the best of circumstances it will be a long road, Powell said, with additional job losses likely through June, a rebound that takes time to "gather steam", and some parts of the economy like the travel and entertainment industries possibly under pressure until there is a vaccine.
"We're not out of ammunition by a long shot", Powell said.
"The damage can be avoided if we provide support now."".
Mr Powell said unemployment could peak at 25 per cent, in levels not seen since the Great Depression of the 1930s.
'In the long run, and even in the medium run, you wouldn't want to bet against the American economy, ' he said.
"This is an outside event, it is a natural disaster, in effect", he said.
From a fundamental perspective, Monday's surge appears to have been triggered by warnings out of the Federal Reserve about potential asset price declines if the coronavirus "pandemic takes an unexpected course, the economic fallout prove adverse, or financial system strains reemerge". The Fed has already initiated a major of Gold gains by lowering USA interest rates to near-zero, amid market murmurs that those rates could turn negative by next year.
The phased reopening of US business and social life gained traction on Monday with more Americans emerging from coronavirus lockdowns and stock markets rising on early test results of a potential vaccine.
"We need to get the economy going again, people are either out of money, or will be very soon", Bermudez said.