Yellen: "US Economy May Enter Recession Due to COVID-19 Spread Impact"

Positive Outlook for the US Economy Before the COVID-19 Pandemic

[Image source=AP Yonhap News]

[Asia Economy Reporter Lee Hyun-joo] Janet Yellen, former Chair of the U.S. Federal Reserve (Fed), expressed on the 26th (local time) that the United States could fall into a recession due to the spread of the novel coronavirus disease (COVID-19).

According to Bloomberg News, at an event hosted by the Brookings Institution, she said, "COVID-19 could have a serious impact on Europe, and it is possible to consider that it could push the U.S. into a recession."

However, former Chair Yellen added, "If COVID-19 does not significantly affect the U.S., the possibility is low," and "The outlook for the U.S. economy before the COVID-19 situation was good."

She went on to say regarding the Fed's monetary policy, "There is some room for maneuver, but it is not a panacea," and "Fiscal policy can play a more active role."

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