London Daily

Focus on the big picture.
Friday, Dec 05, 2025

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 Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
×