The Federal Reserve just tossed a glass of cold water in the face of anyone predicting a swift economic recovery, the Washington Post reports, as the central bank’s latest survey of economic conditions on the ground finds that the ongoing crisis brought on by pandemic shutdowns has caused “steep” job losses, with activity “falling sharply” across the map.
Moreover, business owners reported their outlook for the recovery remains “highly uncertain” and most are pessimistic about the trajectory of the rebound, according to the Fed’s beige book, which collects anecdotal information from a wide swath of business owners around the country.
In a nutshell, the report—covering six weeks of activity through May 18—is a bracing reminder that, as some Americans take advantage of easing restrictions to resume working and spending, and the stock market continues to rally, the economic wound remains open.
Weekly job loss claims have piled up since the pandemic shutdowns began, through last week. And the Fed’s survey suggests a significant number of those job losses will be permanent, among other insights. Read the full story.
