While some countries report on continued economic growth even in the midst of the coronavirus pandemic, experts remain cautious about the future of the world's largest economies.
The outlook for the leading global economy, the United States, is far from positive. In addition to the effects of the COVID-19 outbreak, another reason for its severe economic challenges is the White House's aggressive policy. The pandemic has further aggravated the situation, while the risk of a second wave offers little hope for a quicker economic rebound. "The pace of economic improvement has moderated since the outsize gains of May and June, as is evident in employment, income, and spending data. The increase in permanent job loss, as well as recent layoffs, are also notable," Federal Reserve Chair Jerome Powell stated. The official noted the swift response of the authorities to the economic blow from the coronavirus and expressed his appreciation for the measures aimed at combating the pandemic. According to Powell, the recovery will be stronger and faster if "monetary policy and fiscal policy continue to work side by side".
"There is a risk that the rapid initial gains from reopening may transition to a longer-than-expected slog back to full recovery as some segments struggle with the pandemic's continued fallout," the Fed chief said.
