` – La Fed intends to “put away the emergency tools” activated to counter the impact of the pandemic. But the Delta variant, with economic effects whose extent is still difficult to assess, will require the US central bank to “closely monitor” economic developments.
Fed President Jerome Powell said this, speaking online at a student and teacher event. According to Powell, the recovery of the US economy “is far from complete” and the economic impact of the Delta variant is still unclear.
“It is not yet clear what the consequences of the Delta variant will be on the economy,” said Powell, according to whom the Fed “has acted very quickly” to counter the economic impact of the pandemic, and “some of the instruments adopted are only good in an emergency situation”. So the institute will set them aside once the emergency is over.
However, in the current phase “the Fed must carefully monitor the situation, because Covid is still there and will remain there for some time”. “The economy – he added – will have to adapt in some way to the pandemic “.” Covid – according to Powell – has profoundly changed our economy and after the pandemic we will not return to the economy as before, even if it will take some time to understand the extent of these changes “.
In this regard, Powell specified that somehow “people and businesses have improvised and have already learned to adapt. To live their lives despite Covid. The most obvious thing was to work from home, remotely. Of course. , many will return to work in their offices, but it is difficult to say how this will all happen, so we can say that the pandemic has changed the way we understand work and jobs “.