The U.S. economy can return to positive growth in the third quarter after a massive drop in employment and GDP, Federal Reserve Vice Chairman Richard Clarida told CNBC on Tuesday.
“Our policies we think will be very important in making sure that the rebound will be as robust as possible. We’re in a period of some very, very, very hard and difficult data that we’ve just not seen for the economy in our lifetimes, that’s for sure,” Clarida said.
But a third-quarter rebound “is one possibility. That is personally my baseline forecast,” he added.
Since the economy has gone into an almost complete shutdown due to coronavirus containment measures, the Fed has launched a variety of measures and programs, from slashing short-term interest rates to near zero to lending facilities to corporations and local governments never seen before.
Clarida pledged that the Fed will continue to provide whatever support is necessary to support markets and the economy.
“Realistically, it’s going to take some time for the labor market to recover from this shock. I do think the recovery can commence in the second half of the year,” he added.
This is breaking news. Check back here for updates.