Fed’s Barkin Warns Virus Could Have Lasting Productivity Impact

The coronavirus pandemic could do lasting harm to U.S. productivity unless the nation adapts to the realities of living with Covid-19, says Federal Reserve Bank of Richmond President Thomas Barkin.

“Increased debt loads, reduced bank lending capacity and diminished confidence surely will have a meaningful impact on investment, through which much productivity enhancement occurs,” Barkin said in a blog published Monday on his bank’s website. “A smaller, less-productive workforce leads to a smaller economy and a less attractive future.”