London Daily

Focus on the big picture.
Saturday, Sep 05, 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 Urges Households to Keep Emergency Supplies Amid Severe El Niño Warning
Prime Minister Andy Burnham Sets Out Regional Industry and Prison Reform Agenda
Siemens Energy Wins Rolls-Royce Small Modular Reactor Manufacturing Contract
UK Mortgage Costs Rise as Gilt Yields and Swap Rates Climb
Bank of England’s Huw Pill Calls for Prompt Rate Rise as Inflation Risks Persist
National Audit Office Warns UK Is Unprepared for Major Food Supply Disruptions
British Army Suspends Some Training Exercises as Budget Pressures Intensify
HMS Queen Elizabeth Deploys as NATO Allied Response Force Command Ship
Reform UK Suspends Two Senior Officials Over Alleged Foreign Donation Scheme
UK Reasserts Falkland Islands Sovereignty After Argentina Threatens Sanctions
Scottish Tech Company PureLifi Enters Administration With More Than 40 Job Losses
Scottish Government Names Alyn Smith Innovation and Education Minister
Green Party Co-Leader Zack Polanski to Contest By-Election for Keir Starmer’s Former Seat
Palestine Action Activists Appeal Terrorism-Related Prison Sentences
PwC Report Highlights Persistent Regional Spending-Power Divide Across Britain
UK Names Hundreds of Employers for Minimum Wage Violations
UK Commits £400 Million to International Tropical Forest Fund
UK Extends £2 Bus Fare Cap Across England Through 2027
UK Warns Travellers as US-Iran Tensions Disrupt Middle East Security and Shipping
Andy Burnham Faces Kemi Badenoch in First Prime Minister’s Questions
Kemi Badenoch Names Andrew Griffith Shadow Chancellor in Conservative Reshuffle
UK Treasury and Markets Focus on Fiscal Headroom Ahead of Autumn Budget
UK Government Reverses Early Release Plans for Serious Violent and Sexual Offences
UK and France Review Border Cooperation After 48,000 Small-Boat Crossings Prevented
UK Growth Outlook Weakens as Inflation and Energy Costs Rise
Breeding Tropical Mosquitoes Discovered in East London
Sadiq Khan Agrees to Search of Digital Communications in Palantir Lawsuit
Scottish Protesters Call for Moratorium on AI Data Centre Expansion
Uber Drivers Bring London Class Action Over Algorithmic Management
Reform UK Accepts £4 Million Donation From Cryptocurrency Billionaire Pardoned by Trump
Justice Secretary Tightens Early Release Scheme to Exclude Manslaughter Offenders
Kemi Badenoch Reshuffles Conservative Team as Reform UK Pressure Grows
British Mortgage Rates Rise as Global Bond Sell-Off Pushes Up Borrowing Costs
UK Records Hottest Summer on Record in 2026
UK Government Urges Households to Stock Essential Supplies Ahead of Severe El Niño Risk
UK Prepares Targeted Sanctions Over Israeli Settlements in West Bank
Reform UK Faces Electoral and Police Scrutiny Over Foreign Donation Allegations
UK and France Expand Channel Migration Cooperation as Trade Tensions Surface
UK Marks Merchant Navy Day With Tribute to Civilian Seafarers
Burnham Pays Tribute to Two Police Officers Killed on Duty in Northern England
Booking.com Left Fake Downing Street Listing Online for Two Months, Which Says
Burnham and Macron to Review UK-France Cooperation on Channel Crossings
UK Business Confidence Improves Slightly but Investment Concerns Persist
Burnham Faces Pressure Over Future North Sea Oil and Gas Licences
Burnham Pushes Wider English Devolution Through ‘Number Ten North’
British Chambers of Commerce Raises 2026 UK Growth Forecast to 1%
Keir Starmer Resigns as Holborn and St Pancras MP, Triggering By-Election
UK Chancellor Faces Tighter Budget Headroom as Long-Term Borrowing Costs Rise
UK Government Weighs Thames Water Nationalisation as Financial Crisis Deepens
Prime Minister Andy Burnham Faces First Commons Questions Over Tax and Spending Plans
×