Fed's Evans says too-soon U.S. reopening could prolong downturn

April 14 (Reuters) – The U.S. economy is in for a very sharp, but hopefully short, downturn, Chicago Federal Reserve Bank President Charles Evans said on Tuesday, adding that if employee-employer relations can be maintained during the shutdown, the economy stands a better chance of reviving quickly.

Still, Evans said at an online event hosted by Carnegie Mellon University, if the economy is reopened too soon and the virus resurges, the downturn would likely be prolonged. In any event, there will be a lot of “transformation” to the economy as the shock hits all sectors, raising the need for forbearance and government direction in socializing the costs, he said.

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