Richmond Fed Pres Barkin in webinar w...........>

FED: Richmond Fed Pres Barkin in webinar w Maryland Chamber of Commerce:

- Echoes other FOMC members saying that he expects a meaningful pickup in

activity in Q3, but the trajectory from there will depend on consumer confidence

(will people feel it is safe to return to normal life?) and health outcomes.

Says unlikely that unemp rate will return to single digits this summer.

- Says Fed will keep rates until zero until meeting dual mandate, says "feels to

me like we're nowhere close to that".

- Also echoes Fed Chair Powell's comments at Wednesday's FOMC on hysteresis in

the economy, in which the longer the shutdown lasts, the greater the risk of

permanent damage to output. Both labour force and productivity growth could be

under pressure as some workers stay home while others cannot find new jobs.

- Businesses that are focused on becoming more resilient to such shocks as this

may find themselves less productive and efficient.

- The downturn is likely to last more than a couple of months, and the U.S.

needs to lay out plans to help labor force/productivity recover.