A V Shape Recovery, in Some Sectors

posted by Michael Lewis on May 23, 2020 - 12:00am

“Yeah, there’re letters. People are fascinated by the possibility of different letters.” – Fed Chairman Jay Powell, waiving off a “60 Minutes” question whether the grim COVID-19 recession will be followed by a classic V-shaped recovery where GDP quickly retraces its losses. In the interview, Powell did allow that there was a “a reasonable assumption” that the economy would begin to recover in the second half of this year. But he also talked about downside risks, virus resurgence, and a crisis that could last years. Yet despite the pessimism that has overtaken the Fed, FMI does see clear indications of a V-shaped recovery… in some areas. Perhaps the most noticeable will be the vehicle sector. 

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