Dallas Fed President Robert Kaplan said he’s “cautious and concerned” about the short term downside risks in the economy due to resurgence of coronavirus spread. He warned that “the next two quarters are going to be very challenging, very difficult.” In particular, household income and spending will drop off “at some point” without additional fiscal stimulus.
Nevertheless, he’s optimistic that growth will rebound with the arrival of vaccines. Business contacts have indicated that they’re gearing up fro a strong H2 in 2021.
