Fed’s Jerome Powell warns US may be in a recession

Federal Reserve Chairman Jerome Powell said the economy may be in recession as a result of the coronavirus pandemic, but has potential to rebound depending on how quickly the virus is contained.

During an interview with NBC’s Today show, Powell said the economy was in a strong position before the COVID-19 outbreak spread in the United States, citing 50-year lows in unemployment.

“We may well be in a recession,” said Powell during the interview, but added this recession is different from normal, and there is nothing “fundamentally wrong” with the economy.

“This is a situation where people are being asked to step back from economic activity, close their businesses, stay home from work,” said Powell. “In principle, if we get the virus spread under control fairly quickly, then economic activity can resume, and we want to make that rebound as vigorous as possible.”