The recovery is expected to be slow and uneven, and GDP will probably take several years to return to the trend path expected prior to the virus outbreak. Graph 4  A contraction in demand of this size represents an enormous shock to the labour market. Employment declined by more than 850,000 in April and May.
This is all the more remarkable given that there is no recent real life experience to draw from. Central banks and the new trilemma As a central bank, we empathize with the Fed’s concerns. The crisis has pushed central bank policy making into uncharted territory.