Minneapolis Fed chief fears 18 months of “extended” closings in fight against COVID-19


US could face 18 months of COVID-19 flare-ups and economic downturns until effective vaccine or treatment is developed, warned head of the Federal Reserve Bank of Minneapolis on Sunday .

As officials around the world “loosen economic controls, the virus is resurfacing,” Neel Kashkari noted on CBS’s “Face the Nation”.

“We could have these waves of outbreaks, controls, outbreaks and controls until we actually get therapy or a vaccine,” he said. “I think we should all focus on an 18-month strategy for our health care system and our economy.”

It “could be a long and difficult road before us until we get effective therapy or a vaccine. It is difficult for me to see a V-shaped recovery in this scenario, “he added, referring to a model in which the United States collapses before returning to where it was.

“We need to find ways to get healthy people who are less at risk back to work, and then provide assistance to those who are most at risk, who will have to be quarantined or isolated for the foreseeable future.” future, “he said. “It is a real challenge for all of us. “

President Donald Trump has said he believes the economy could be turned off as early as May 1. Earlier, he had planned an Easter date to lift the controls.

Trump’s top health adviser, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said on CNN’s “State of the Union” on Sunday that a “gradual” partial reopening of the economy could start in May. But he warned that an outbreak could break out again in the fall.

Last month, a study by Imperial College London recommended an 18-month stopping period – at least intermittently – to protect yourself from COVID-19 until a vaccine or treatment can be developed. He also warned, however, that “the social and economic effects of the measures … will be profound”.

About 16 million people have filed for unemployment benefits in the United States in the past three weeks.

Fed Chairman Jerome Powell warned Thursday that the COVID-19 economic slowdown is striking with “alarming speed”.

Check out Kashkari’s interview in the video above.


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