London Daily

Focus on the big picture.
Saturday, Aug 29, 2026

Fed's Neel Kashkari says coronavirus economic recovery 'could be a long, hard road'

Fed's Neel Kashkari says coronavirus economic recovery 'could be a long, hard road'

“Barring some health-care miracle like that, it seems we’re going to have various phases of rolling flare ups,” Kashkari said, with “different parts of the economy turning back on, maybe turning back off again.”. Kashkari's comments came days after the Labor Department reported that another 6.6 million Americans filed first-time unemployment claims in the past week.
Minneapolis Federal Reserve President Neel Kashkari said Sunday he expects the path to economic recovery from the coronavirus pandemic will be a “long, hard road,” pouring cold water on hopes for a “V-shaped” rebound.

Kashkari, who oversaw the Troubled Asset Relief Program that the U.S. implemented in the wake of the 2008 financial crisis, said on CBS’ “Face The Nation” that expectations for a sharp, speedy recovery seem too optimistic.

“It would be wonderful if some new therapy were developed in the next couple months,” Kashkari said. “Then potentially we would have a V-shaped recovery” – a phrase describing a steep market decline followed by a galloping rally.

But “barring some health-care miracle like that, it seems we’re going to have various phases of rolling flare ups,” Kashkari said, with “different parts of the economy turning back on, maybe turning back off again.”

“This could be a long, hard road that we have ahead of us until we get to either an effective therapy or a vaccine. It’s hard to see a V-shaped recovery under that scenario,” Kashkari said.

Kashkari’s gloomy outlook came days after the Labor Department reported that another 6.6 million Americans filed first-time unemployment claims in the past week. That massive spike brought the total number of jobless claims to 16 million over just three weeks, a staggering figure equivalent to about 10% of the U.S. workforce.

Other business leaders echoed Kashkari’s comments. Entrepreneur and Dallas Mavericks owner Mark Cuban told Fox News on Sunday that he thinks recovery will come “slower” than the V-shaped model investors are hoping for.

“People are not going to feel confident right off the bat. There’s going to be a lot of trepidation. That concern is going to lead to people holding back in spending money,” Cuban said.

Another Fed president, St. Louis’ James Bullard, last Sunday offered a more positive take on the economic havoc brought by the coronavirus, saying he did not believe the U.S. economy or jobs market was in “free fall,” as some have described.

“The uptake on the unemployment insurance program is a good thing because it means you’re getting the transfers to the people that are being disrupted by this health-ordered shutdown,” Bullard said.

Kashkari also said that the $350 billion emergency funds for small businesses will not be enough to cover everyone’s needs. But he said he is “optimistic” that Congress will grant more money in the future to help keep small businesses from folding under the strain of strict social distancing measures being imposed by states to contain the spread of the virus.

“But then again, we don’t know if this support is going to be long enough,” Kashkari added, “because if we need to have different phases of shutdowns for the next several months or until we have a therapy or vaccine, we’re going to need more help than that.”

The Fed, meanwhile, is being “aggressive” in its efforts to blunt the impact of the disease, Kashkari said. The central bank announced a slew of new programs Thursday aimed at lending out as much as $2.3 trillion to businesses and governments.
Newsletter

Related Articles

0:00
0:00
Close
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
Reform UK Proposes £30 Tax Credit for Long HMRC Helpline Waits
Labour Debates Caps on Political Donations Ahead of Future Elections
England Accelerates Housing and Planning Reforms Amid Affordability Crisis
NHS Expands Walk-In Community Health Centers to 40 Locations
UK Regulators Expect Meta to Apply Stronger Child Safety Standards Globally
UK Groups Demand Faster Transport Decarbonization After Extreme Summer Weather
UK Launches 10,000 Work Experience Placements as Youth Unemployment Concerns Rise
UK Government Faces Difficult Autumn Budget Choices Over Defense, Spending and Taxes
UK Government Rejects Calls to Slow AI Data Center Expansion
IMF Raises UK Growth Forecast to 1% Despite Global Supply Chain Risks
UK Unsecured Loan Defaults Reach Highest Level Since 2009
UK Energy Price Cap to Rise 4% to Three-Year High of £1,723
More Than 30 Britons Reported Missing After Deadly Nepal-Tibet Floods
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
Police Intensify Investigation Into Organised Crime-Linked Violence in Middlesbrough
UK Small Businesses Face Continued Revenue and Tax Pressures, Federation Says
M&G Real Estate Buys West Sussex Affordable Housing Portfolio for £29 Million
Royal Navy Warship HMS Tamar Visits Cambodia for Regional Security Engagement
UK Government Brings Forward Benefit Payments Ahead of August Bank Holiday
Four Men Plead Guilty to Arson Attack on Jewish Community Ambulances in North London
Ofgem Raises Great Britain’s Household Energy Price Cap by Four Percent From October
UK Government Rejects Green Party Call for Artificial Intelligence Datacentre Moratorium
Millions of UK Benefit Recipients Receive Payments Early Ahead of August Bank Holiday
UK Prime Minister Meets Northern Ireland Leaders in Belfast Over Budget Crisis
Crypto Tax Gains Reach One Point Three Eight Billion Pounds Among UK Investors, HMRC Data Shows
UK Corporate Confidence Rises to Highest Level Since March, Lloyds Survey Shows
Mike Ashley Attacks UK Government Business Rates and Cost-of-Living Policies
Scottish Universities Face Two Hundred Million Pound Annual Funding Gap, Report Warns
Entertainment Figures Urge UK Government to Protect People From AI Voice Cloning
Manchester Airports Group Confirms Customer Data Breached in Cyberattack
Seven Charged Over Vandalism at Donald Trump’s Turnberry Golf Resort in Scotland
Nearly 23,000 UK Households Expected to Move Home on Busiest Day of 2026
UK Benefit Payments to Arrive Early Ahead of August Bank Holiday
Reform UK Pledges to Replace GDPR and Cut Tax Administration Red Tape
Andy Burnham Launches Work Experience Plan for One Million Young People Outside Education or Work
Andy Burnham Faces Labour Backlash After Dropping Support for Political Donations Cap
Andy Burnham Announces UK-Wide Summit With Leaders of Scotland, Wales and Northern Ireland
×