by Mike ‘Mish’ Shedlock
Boston Fed president Eric Rosengren is worried about the recovery. In addition, he is the third Fed president praising lockdowns.
Key Takeaways from Boston Fed President Eric Rosengren’s Aug. 12 Remarks
1. Takeaway: The path of the economy will depend significantly on the course of the virus. So, limited or inconsistent efforts by states to control the virus are not only placing citizens at health risk, but are also likely to prolong the economic downturn.
Excerpt: “As long as the virus poses significant threats to public health, a full economic recovery will be very difficult as individuals, often voluntarily, avoid activities that place their health at risk. […] Indeed, the trajectory of the economic recovery will be determined more by the path of the virus than by the path of policymaking, although monetary and fiscal policy can mitigate, and have mitigated, some of the most significant adverse impacts.”