WASHINGTON (Reuters) – The US economy could be “about to complete the recovery” from the recession caused by the coronavirus pandemic, Richmond Federal Reserve Chairman Thomas Barkin said on Sunday. there are risks for some workers.
“Vaccines are being deployed and the rates of cases and hospitalizations are declining. Excessive savings and fiscal stimulus should help fund the accumulated demand from vaccine-free consumers and the warmer climate, ”Barkin said in statements prepared for a Sunday evening conference. Credit Suisse on investments in Asia.
“With that support, the economy has come most of the way back,” he said, with the recently enacted $ 1.9 trillion federal coronavirus relief program that drove a jump in revenue and savings. families that helps compensate for the still profound job loss.
“I hope we’re on the verge of completing the recovery,” Barkin said.
As the health crisis eases, he said U.S. officials should focus on how to facilitate the transition to the jobs of working parents and others displaced by the pandemic, strengthen education to ensure that students do not suffer wasted time in the classroom and take other measures to prevent “scarring”.
“We should pay special attention to programs that allow primary caregivers to return to work. This includes assistance with childcare, care for the elderly and the reopening of schools safely, ”he said.
One of the bright spots, he said, is that so many of the jobs lost during the crisis are in “highly rotating occupations, such as employees and waiters. Even before the COVID-19 pandemic, these workers changed jobs. regularly, ”which could decrease the overall damage from long-term downtime.
Teleworking can also allow for faster matching between workers and jobs because those with the right skills will not necessarily have to relocate.
After the pandemic passed, he said officials should focus on “letting market forces work” so that government policy does not “hinder the creation of tomorrow’s companies by trying to protect today’s companies.”
Reports by Howard Schneider; Edited by Peter Cooney