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Lockdown mentality still holding the economy back, banking official says

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Lockdown mentality still holding the economy back, banking official says

It’s not one specific thing related to Covid-19 that is keeping the economy down, but everything related to the pandemic, the president of the Federal Reserve Bank of Minneapolis said on Sunday.

Speaking on CBS News’ “Face the Nation,” Neel Kashkari said it was a complex series of factors that led to Friday’s disappointing jobs report, which showed that only 266,000 jobs were created in April, far below expectations.

“This is unlike any other economic shock in any of our lifetimes,” he told host John Dickerson.

A variety of theories have been put forth as to why April’s numbers were not better, including the idea that people were fine with sitting home and collecting enhanced unemployment benefits, as well as concerns about continued Covid risks, a lack of decent child care and fear of using crowded public transportation.

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