Kashkari Says U.S. May Face 18 Months of Rolling Shutdowns

Without an effective therapy or a vaccine for the novel coronavirus, the U.S. economy could face 18 months of rolling shutdowns as the outbreak recedes and flares up again, Federal Reserve Bank of Minneapolis President Neel Kashkari said. “We’re looking around the world. As they relax the economic controls, the virus flares back up again,” Kashkari said Sunday on CBS’s “Face the Nation.” Kashkari is a voter in 2020 on the Fed’s policy-setting Federal Open Market Committee.

“We could have these waves of flareups, controls, flareups and controls until we actually get a therapy or a vaccine. I think we should all be focusing on an 18-month strategy for our health care system and our economy.”

Unemployment has skyrocketed in the U.S. over the last few weeks as state and local governments have ordered businesses to close their doors in a bid to contain the spread of the virus.

a screenshot of a cell phone: Filings for U.S. unemployment benefits post third straight week in the millions © Bloomberg Filings for U.S. unemployment benefits post third straight week in the millions

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said Sunday on CNN’s “State of the Union” that a partial reopening of the economy could possibly begin in May, but cautioned that the outbreak could flare up again in the fall. Kashkari warned that “this could be a long hard road that we have ahead of us until we get either to an effective therapy or a vaccine.” “It’s hard for me to see a V-shaped recovery under that scenario,” he said. The U.S. central bank has responded aggressively to blunt the effect of the coronavirus pandemic on the U.S. economy, launching an unprecedented range of emergency programs to support as much as $2.3 trillion in loans and slashing interest rates to nearly zero.

The Fed has more firepower to bring to bear if needed. Cleveland Fed chief Loretta Mester, also a 2020 voter, said Friday that the central bank was “likely not done” in seeking ways to keep credit flowing in the economy.

“We’re always looking for things where if we have a tool to be able to do it, and if we think it’s needed, we’re going to do it,” she told an online forum hosted by the City Club of Cleveland. The economic pain is already severe. Almost 17 million people have filed for U.S. unemployment benefits in the last three weeks, implying a jobless rate of around 13% or 14%, with output in the second quarter expected to shrink sharply. Fed Chairman Jerome Powell on Thursday cautioned that the slowdown was striking with “alarming speed” and that unemployment would temporarily hit very high levels. Nick Note: Michael Angelo believed in the shadows. I in a different time believe in the pump the Central banks money pump. Both the shadows and the pump refer to two things. One the power of the shit heads in charge. AND the stupidness of their thinking. Obviousness the pope was wrong about the earth being the center of the universe and being flat. For that matter the English Doctores were wrong. During the Great Plague in 1665 they ordered the killing of all cats The killing of cats and dogs, which were thought to carry the plague. No cookie it was the rats that were carriers and they infested the cites now that their natural predators were killed. In our time myths abound. And mistakes are many. But the biggest mistake ever besides ending Quarantines to soon is this incredible pumping of money. Capitalism and the free enterprise system as we know it has ended. Government will capitalize and be a partner in every business that knows how to hire a lobbyist and pay off a politician from Boeing to the zzzzzz restaurant. The initial public offering will be replaced by the Initial Political payoff! I have long ago ceased to care how the stupids that rule the world will fuck things up. I had a epiphany decades ago and decided to make money off of the insanity for me and my members and stop charging windmills. I sassed the risks, how the idiots would react and laid out my. strategies in great detail. I am happy to report we have guessed lucky again. For the record the biggest stock market rally and economic upswing ever is about toi happen. All bought to you by the most incredible pumping of money ever. After the biggest spending orgy every. Look out below the coming wipeout in 2 years will give you NEGATIVE -22% FED FUND RATES……