EDITOR NOTE: All three major US stock indices are at record highs--meaning, the broader market is at the highest point ever reached in history. This reflects a strong sentiment toward our economic prospects, as the stock market is a leading indicator that prefigures the economy. Yet according to some in the Federal Reserve, we’re still in a very deep recession. And with no continuing fiscal deal in sight, with the expiration of CARES Act benefits, with pandemic cases and deaths at record highs (not unlike the stock market), and with the re-introduction of municipal lockdowns, American sentiment and economic reality are going head to head. Only one can win out over time.
The United States is still in a "very deep recession," according to New York Federal Reserve Bank President John Williams said on Wednesday.
"We are still in a very deep recession. One of the big question marks, as we move forward about the economic recovery, is how big the effects will be of this very large wave of COVID cases along with the expiration or diminishment of fiscal support," Williams said during a virtual event organized by the New York Fed.
Commenting on the prospects for an economic recovery next year, Williams noted that it will ultimately depend on when a coronavirus vaccine becomes widely available.
Originally posted on Teletrader