Philadelphia Fed's Pres. Parker speaking
- coronavirus is determining the trajectory of the US economy
- the economy has rebounded faster than many of us had projected
- sees recovery continuing, but says recent size of plateauing suggests return to baseline will take some time
- sees sectors like tourism and hospital and hospitality subdued for a long time to come presenting an overall drag on GDP and employment growth
- does not see unemployment returning to pre-pandemic levels probably until 2023
- forecast depends on sustained decline in Covid 19 infections and assumes a widely available vaccine in mid to late 2021
- forecast also assumes 1 trillion of additional fiscal support which is yet to materialize
Speaking of fiscal support, the chatter from Washington is quiet today although Pelosi and McConnell are expected to speak. Last night, Pelosi said that progress is slow.
