EDITOR NOTES: While everyone hoped coronavirus would be just a short downturn and things would bounce back quickly... it no longer looks that way. The Fed is now saying the recovery will likely be "long and drawn out." While stock pickers are wildly guessing, the smart money is turning to save havens of gold and silver.
In the initial days of the coronavirus pandemic, there was hope that the economy would be able to bounce back quickly, but reality has turned out differently, said Minneapolis Fed President Neel Kashkari said Thursday. "The V-shaped recovery is off the table," Kashkari said during a virtual roundtable discussion. Kashkari said the recovery would likely be long and drawn out. While there will be a bounce after the worst GDP contraction in the April-June quarter, the economy will be "nowhere near back" to where it was in December 2019, he said. The unemployment rate, which shot up to 14.7% in April, will only come down slowly, he added. Kashkari said he didn't think the recovery of equity prices was any signal about the health of the economy. "Stock pickers are just wildly guessing. At this point, I want to listen more to health experts than investors," Kashkari said.
Originally posted on Market Watch