Fed. Reserve Chair: Optimistic on Economy Bounce Back, But Urges Caution
Some parts of pre-virus life are beginning to come back as more states race to reopen.
By Monday, 48 states will have relaxed their stay-at-home orders.
Yellowstone and Grand Teton National Parks are set to partially reopen Monday, testing out social distancing guidelines at popular attractions like Old Faithful.
And for the first time, California Gov. Gavin Newsom said some of the state’s school districts could be ready to return to class in the fall.
He says he’s optimistic about how his state is performing.
“About 75% of our economy is already open,” Gov. Gavin Newsom says. “We’ve seen dozens of countries that have moved more quickly…where restaurants are reopening, office, manufacturing, logistics, warehousing, operations, and the like. But it’s with modifications.”
The U.S. is currently reporting nearly 90,000 deaths among almost 1.5 million confirmed cases.
Federal Reserve Chairman Jerome Powell says he’s optimistic the U.S. economy will begin to bounce back this year. But he’s also expressing concern reopening the economy too soon will lead to a second wave of the coronavirus.
Two weeks after loosening restrictions in Texas, the state reported its highest number of deaths late last week, and had its highest number of new cases on Saturday.
Still, Texas gyms and offices will be allowed to open at 25% capacity Monday.
In an interview with 60 Minutes, Powell said the economic health of the country is directly tied to the coronavirus. And he said reopening too quickly could reverse the progress that’s been made in fighting the spread.
“The reason that cases have gone down and are declining is because people have been in their homes and not in their businesses and not out among crowds,” Powell said.
Powell says there’s still much the fed can do to help businesses and households struggling from the coronavirus pandemic.
He also predicts without a second wave of the virus, the economy will steadily recover through the second half of the year.