The deep recession triggered by the coronavirus is the worst downturn since the Great Depression, but the hope is that the rebound will be equally swift and strong-a 'V' recovery. Unfortunately, the outlook for this best-case scenario is precarious.
Some Federal Reserve officials are managing expectations down, advising that the path of the rebound may be slow and uneven. "I don't expect a sharp V-shaped recovery, I expect something more like negative quarters of growth throughout 2020, and then a gradual return to positive growth in 2021," says Federal Reserve Bank of San Francisco President