Fed’s Kaplan: Not Ruling Out U.S. Slipping Back Into Recession

The transcript discusses the economic outlook for 2021, highlighting potential GDP growth of 3.5% or more, contingent on a successful COVID-19 vaccine rollout. However, the resurgence of COVID-19 poses risks, potentially leading to negative growth and a temporary recession. The Federal Reserve's response, including bond buying and support programs, is considered crucial. The focus remains on overcoming the immediate challenges posed by the pandemic, with better economic conditions expected in the latter half of 2021.

What measures are suggested to mitigate the economic challenges in the coming months?

What role does the vaccine play in the economic recovery expected in 2021?