Fed Official Says Another Full Lockdown Is Needed to Save Economy

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A top Federal Reserve Bank official says stricter COVID-19 restrictions are needed to ensure the return of a healthy U.S. economy.

On Sunday, the President of the Federal Reserve Bank of Minneapolis, Neel Kashkari, told CBS' Face the Nation that the U.S. government needs to get a better handle on stopping the spread of the coronavirus if the economy is to have any chance to recover.

Kashkari’s comments on Face the Nation are contrary to President Trump’s efforts to stop the covid pandemic and to many business owners struggling through the pandemic.

“I mean if we were to lock down really hard, I know I hate to even suggest it,” said Kashkari. “People will be frustrated by it, but if we were to lock down hard for a month or six weeks, we could get the case count down so that our testing and our contact tracing was actually enough to control it the way that it's happening in the Northeast right now.”

Kashkari continues, “If we don't do that and we just have this raging virus spreading throughout the country with flare-ups and local lockdowns for the next year or two, which is entirely possible, we're going to see many, many more business bankruptcies, small businesses, big businesses, and that's going to take a lot of time to recover from to rebuild those businesses and then to bring workers back in and re-engage them in the workforce. That's going to be a much slower recovery for all of us.”

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