During this week’s Federal Open Market Committee (FOMC) meeting, the Federal Reserve (the Fed) expressed doubts that the US economy would experience a V-shaped recovery in the near future. The doubt comes as numerous states are seeing increases in COVID-19 cases with some states rolling back the progress they made on reopening. The Fed notes that while their economic tools can help the US recover somewhat, recovery is ultimately dependent on how we respond to the health crisis. Fed Boston President Rosengren commented that the Fed’s policy is “not going to be able to offset all the losses if we continue to make serious public health mistakes.” Financial experts also note that some industries will face problems after the pandemic because of the changes the virus will bring to consumer confidence. “There is nothing the Fed can do to bring back the airline industry, to replace broken supply chains, to make people feel comfortable going out to shopping malls,” said former Fed Board Member Randall Kroszner.

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