Uncertainty hampering Fed’s and Congress’s stimulus
Research says uncertain outlook created by pandemic has been a key contributor to size of recession
The uncertainty unleashed by Covid-19 has hampered the stimulus launched by both the Fed and US Congress, says research presented on August 28 at the Jackson Hole conference.
“Policy uncertainty for both fiscal and monetary policy in the US, as well as very high economic uncertainty over what firms and consumers are going to do probably reduced US GDP by something like 2–4% of GDP since the end of 2019,” said author Nicholas Bloom, a professor at Stanford University.
“This is obviously just a
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