WASHINGTON (Reuters) – The US economy may be “on the verge of completing the recovery” from the recession triggered by the coronavirus pandemic, Richmond Federal Reserve President Thomas Barkin said on Sunday, although the risks remain for some workers.
“Vaccines are being launched and rates of cases and hospitalizations are falling. Excessive savings and fiscal stimulus are expected to help finance the pent-up demand of consumers released by vaccines and the warmer climate, ”said Barkin in comments prepared for delivery late on Sunday at a Credit Suisse conference on investments in Asia.
“With this support, the economy has recovered almost all the way back,” he said, with the $ 1.9 trillion federal coronavirus relief program, driving a jump in family income and the economy that helps make up for the loss. still profound of jobs.
“I am hopeful that we are about to complete the recovery,” said Barkin.
As the health crisis subsides, he said US officials should focus on how to facilitate the transition back to jobs for working parents and others displaced by the pandemic, strengthening education to ensure that students do not suffer from the disease. waste of time in the classroom and take other measures to avoid “scarring”.
“We must pay special attention to programs that allow primary caregivers to return to work. This includes support for daycare, assistance for the elderly and reopening schools safely, ”he said.
One positive point, he said, is that many of the jobs lost during the crisis are in “high-turnover occupations, such as housekeepers and waiters. Even before the COVID-19 pandemic, these workers changed jobs regularly, ”a fact that can lessen the overall damage from long-term unemployment.
Teleworking can also allow for a faster match between workers and jobs, because those with the right skills will not necessarily need to be relocated.
As soon as the pandemic passes, he said the authorities should focus on “letting market forces work” so that government policy does not “prevent the creation of tomorrow’s companies by trying to protect today’s companies”.
Howard Schneider reporting; Peter Cooney edition