Economics
Fed’s Bullard Urges U.S. Reopening to Avoid Risk of Depression
- While shutdown promotes health, it can’t last forever, he says
- Bullard sees Fed policies as effective in ensuring liquidity
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Federal Reserve Bank of St. Louis President James Bullard said policy makers need to mitigate the ongoing risks from the coronavirus in the second half of the year and gradually reopen the U.S. economy to avoid deeper harm.
“The shutdown can’t go on forever because if it does, deep into the second half, then I think you risk getting into a financial crisis or even a depression scenario,” Bullard told CNBC television in an interview on Wednesday. “And if you get into that I think even health outcomes would be way worse.”