Its not the COVID economy its just the economy now
- Instead, the shocks of the pandemic have reshaped the very fabric of the economy itself.Zoom in: Powell was explaining why the FOMC dropped the term "public health" from the risk factors listed in its post-meeting statement this week.
- Reshoring/friend-shoring: The pandemic's supply shocks, and increasing tensions with China, are pushing some companies to move manufacturing closer to home or at least toward "friendly" nations.
- The bottom line: The shocks of the past few years have changed so many people's lives — there's been so much loss — it would be weird if the economy didn't change, too.
- But high inflation, spurred by the supply shocks of the pandemic, pushed central bankers to raise rates.
- Illustration: Annelise Capossela/AxiosThe Federal Reserve doesn't see the pandemic posing a risk to the economy anymore — an important milestone.
- The big picture: Some parts of our altered post-COVID economy are shifts that were already underway, and were accelerated by the pandemic.
The Federal Reserve doesnt see the pandemic posing a risk to the economy anymore an important milestone. Driving the news COVID is no longer playing an important role in our economy, chair Jero [+3665 chars]