Economics
U.S. Economy May Need More Fiscal Stimulus, Fed’s Kaplan Says
- Consumers need more virus testing to feel comfortable again
- Fed, Congress may need to do more to spur economic growth
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More pervasive virus testing and further fiscal stimulus is likely needed to revive consumer confidence and foster growth in the U.S. economy, according to Robert Kaplan, president of the Federal Reserve Bank of Dallas.
“Whatever the government says, until the consumer is willing to resume some of their previous activities, this recovery is not going to be as strong as it could be,” Kaplan said Wednesday in an interview on CNBC. “Until they feel more comfortable they’re not going to fully engage in previous activities, and that you can’t legislate, you can’t stimulate with money. That’s behavioral.”