'W-shaped' recovery may be too optimistic, Fed's Powell suggests

davfor

We have read about the V, U, and W shaped recoveries. Now Jerome Powell suggests another possible path moving forward. Names for it like slow-rolling, obstacle course, and washboard come to mind (sisyphus pit is perhaps too extreme). My hunch is that the path that proves to be correct will at least partially dictate the market's path over the next one to two years.

Calling all current economic forecasts “highly uncertain,” Powell mapped out why he believes the economy may go through a series of peaks and troughs for at least a year or more as the world battles to keep the virus under control.

“This is such an extraordinary, extraordinary shock, unlike anything certainly that’s happened in my lifetime ... we’re still putting out the fire, we’re still trying to win, and I think we’ll be at that for a while,” he said.

https://reuters.com/article/us-health-coronavirus-fed-powell-analysi/w-shaped-recovery-may-be-too-optimistic-feds-powell-suggests-idUSKBN22C1MU