U.S. faces ‘long, hard road’ to economic recovery, says Minneapolis Fed president

The recovery of the U.S. economy from the impact of the coronavirus outbreak may be a “long, hard road,” according to Minneapolis Federal Bank Reserve President Neel Kashkari on Sunday.

Some sectors of the economy may have to shut down and restart, he added.

Kashkari said that a quick economic recovery was overly optimistic unless a cure for the disease would be developed in the succeeding months.

Kashkari’s statements came after President Donald Trump expressed hope on re-opening the economy as soon as possible. An advisory group is set to be revealed by Trump whose job is to prioritize the economic opening.

Public health experts warned that the coronavirus death toll in the United States could soar up to 200,000 over the summer if lockdowns and stay-at-home orders were lifted at the end of the month.

Kashkari said that small businesses need additional support more than the $350 billion aid package provided. He added that Congress would likely approve more funding.

In an 18-month strategy focused on addressing health and economic problems, some parts of the economy may have to shut down and restart, said Kashkari.

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