Powell says GDP could shrink more than 30 pct, but...

[tsptalk]

Powell says GDP could shrink more than 30%, but he doesn’t see another Depression


https://www.cnbc.com/2020/05/17/pow...ent-but-he-doesnt-see-another-depression.html


Negative 30% GDP and stocks explode on the news of no depression? :laugh:

 

[Khotso]

Powell says GDP could shrink more than 30%, but he doesn’t see another Depression


https://www.cnbc.com/2020/05/17/pow...ent-but-he-doesnt-see-another-depression.html


Negative 30% GDP and stocks explode on the news of no depression? :laugh:

I watched that interview and was struck by that as well last night. But mulling further on it since I realized that Powell is right about the economy was fundamentally in good shape going into this Covid-19 market plummet unlike the market crash kicking off the Great Depression. He also pointed out that the Fed Reserve has authorities it did not have during the Great Depression -- like QE -- that can be used to restore stability and growth sooner than would otherwise be the case. That gives me some confidence that we won't see a lost decade at least. Hope he's right about all of that.