By Jonnelle Mars
Jun 30 (.) – The US economy is showing signs of a turnaround as business reopens, but the pace of recovery is being slowed by large-scale outbreaks of the virus in some states and it could be years before Get back in top shape, New York Federal Reserve Bank President John Williams said Tuesday.
Increases in consumer spending and building permits suggest that economic activity is improving in some areas and that the “low point” of the crisis may have passed, Williams said. Manufacturing activity and small business incomes in hard-hit areas like New York are increasing, he said.
“People have been going back to work and the unemployment rate has started to drop,” Williams said according to statements prepared for a virtual event. “Although this improvement is welcome, the economy is still far from healthy and a full recovery is likely to take years to achieve.”
The Federal Reserve mobilized aggressively in March to support the United States economy by reducing rates to near zero, buying trillions of dollars in bonds and launching a series of emergency loans to keep the flow of credit to homes and businesses.
Williams said he believes the country’s labor market may return to its pre-pandemic levels, but warned that large-scale outbreaks occurring in some states could slow the pace of economic recovery.
“This is a valuable reminder that the fate of the economy is inextricably linked to the trajectory of the virus,” he said. “A strong economic recovery depends on the effective and sustained containment of COVID-19.”
(Report by Jonnelle Marte, Edited in Spanish by Javier López de Lérida)