A prolonged shutdown of the U.S. economy could trigger a second Great Depression, according to St. Louis Federal Reserve Bank President James Bullard, who said the nation needs to adapt to the new risk in the era of the coronavirus pandemic.
“What you’re risking here is that this morphs into a financial crisis and makes this so much worse,” Bullard told FOX Business’ Edward Lawrence. “And then the outside morphs into a depression scenario, in which health care outcomes, as well as economic outcomes, would be terrible. You don’t want to play with fire too much here.”
Senate Majority Leader Mitch McConnell said a measure to lift the U.S. economy would have a more narrow scope than the $3 trillion package House Democrats approved earlier this month.