It is not so simple to pinpoint a trajectory for economic recovery vis-à-vis the continuing impacts of the pandemic. Jerome Powell of the Fed believes it will depend a lot on how the pandemic plays out and in respect to government regulations. With new mutations and the resurgence of a more contagious stream, he insists that we remain aware that it is not over yet and people must continue to “stay focused on it as a country and get there. [He added that] the path of the economy continues to depend significantly on the course of the virus. A resurgence in recent months in COVID-19 cases, hospitalisations and deaths is causing great hardships to millions of Americans and is weighing on economic activity and job creation. Overall, economic activity remains below its level before the pandemic and the path ahead remains highly uncertain. As with overall economic activity, the pace of improvement in the labour market has slowed in recent months.”
It’s not easy that the burden has not been shared equally among all Americans. Those who have suffered the most include low wage owners, African Americans and Hispanics.
Having said that, there is some indication of an economic recovery. There were 22 million jobs lost in March and April of 2020 from the pandemic. Half of those have come back. The economy is also only operating at 82 percent capacity. And with the vaccine and additional stimulus checks this could also forge the economic recovery further ahead.