Fed’s Harker warns of a second US recession in 2021 if too quick to reopen

Philadelphia Federal Reserve Bank President Patrick Harker speech

  • could see robust growth in H2 if US economy reopens in June with smart measures to contain virus
  •  says that without effective mitigation measures, economy could severely contract again in 2021
  • US economy will underperform until virus is under control
  • Fed is considering facilities that would lend directly to colleges, non-profit hospitals
  • banks should not issue large dividends at the moment
  • sees ‘brutally painful’ second quarter
  • says factories may be able to bounce back, but damage to travel, hospitality may be long-lasting

Headlines via Reuters

Philadelphia Federal Reserve Bank President Patrick Harker speech