The US will need to spend trillions more as economy takes until 2022 to fully recover: CNBC survey
Shoppers wearing protective masks walk through the re-opened Anderson Mall in Anderson, South Carolina, on Friday, April 24, 2020.
Dustin Chambers | Bloomberg | Getty Images
The economy could take one to two years to rebound to full strength and the Federal Reserve and Congress, having already committed historic sums to fight the coronavirus pandemic, will have to commit trillions more, according to respondents to the CNBC Fed Survey.
With the Federal Reserve’s balance sheet already at an unprecedented $6.45 trillion, the 36 respondents see it rising on average to $9.8 trillion. The additional trillions will be added by the end of the current quarter, the respondents expect. Congress, having already committed about $2.5 trillion, is seen putting in an additional $2 trillion.
“My guess is that the virus itself will largely disappear within a year, but that the structural social and economic …continued .
[Source: CNBC News]