Federal Reserve chair Jerome Powell gave investors a ‘dire warning’ about the economic prospects yesterday, says John Velis, strategist at BNY Mellon. Velis writes: In short, Powell is warning of a long, drawn-out recession, where productivity, income, and employment growth stagnate and where entire businesses and industries are wiped out and debt mounts “for years to come”. This is a dire risk, and one which Fed policy tools cannot do much to address without an assist from fiscal policy.
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What, investors didn't fear long-term economic harm from Covid-19 until now? Or institutions getting rich off the little guy?
Ya think?