Covid-19 woes: With businesses shut, Fed policymakers see slow US recovery

Richmond Federal Reserve Bank President Thomas Barkin said success of any recovery would hinge on consumers being reassured by businesses, particularly in the service sector, that they will be safe

The US economy is set for a deep slide in coming months with the coronavirus forcing businesses to shut and putting millions out of work. However, Federal Reserve policymakers are also warning of a sluggish recovery once the pandemic subsides.

"Because of the shock of this... will consumer behavior just be more cautious?" Dallas Federal Reserve Bank President Robert Kaplan asked in a phone interview with Reuters on Wednesday.

"It's not just the safety concerns... it's also financial and potentially job insecurity which might cause them to save more and spend less."

Such caution will mute the strength of the rebound and leave