WASHINGTON (Reuters) – The US economy could be “on the verge of recovering” from the recession triggered by the coronavirus pandemic, Richmond Federal Reserve Chairman Thomas Barkin said on Sunday, although risks remain for some workers.
“Vaccines are being carried out, and case rates and hospitalizations are falling. Excess savings and fiscal incentives should help fund demand from vaccine-free consumers and warmer weather, ”Barkin said in remarks prepared for Sunday evening delivery at a Credit Suisse investment conference in Asia.
“With this support, the economy has largely come back on track,” he said, with the recently adopted $ 1.9 trillion federal coronavirus aid program fueling an increase in household income and savings that help offset the loss. still deep jobs.
“I hope we are about to complete the recovery,” Barkin said.
As the health crisis calms down, he said U.S. officials should focus on how to facilitate the transition back to work for working parents and other pandemic displaced people, to support education to ensure that students do not suffer from wasted time in class and take other measures to prevent “scarring”.
“We should pay special attention to programs that allow primary caregivers to return to work. This includes support for childcare, care for the elderly and the safe reopening of schools, ”he said.
A bright point, he said, is that so many jobs lost during the crisis are in “high-turnover occupations, such as housekeepers and waiters. Even before the COVID-19 pandemic, those workers regularly changed jobs, which could reduce the general damage caused by long-term unemployment.
Teleworking can also allow for a faster match between workers and jobs, as those with the right skills will not necessarily have to move.
Once the pandemic passes, he said officials should focus on “letting market forces work,” so that government policy does not “prevent the creation of tomorrow’s companies when trying to protect today’s companies.”
Howard Schneider’s report; Montage by Peter Cooney