(Reuters) – Chicago Federal Reserve President Charles Evans said Tuesday the U.S. economy risks a longer, slower recovery, if not an outright recession, if the U.S. Congress fails to pass a fiscal package to support out-of-work Americans and state and local governments.
“Fiscal support is just fundamental,” Evans said at a virtual meeting of the London-based Official Monetary and Financial Institutions Forum. His own forecast for the U.S. unemployment rate to fall to 5.5% by the end of next year assumes a fiscal package of at least $500 billion or $1 trillion.
(Reporting by Ann Saphir; Editing by Chizu Nomiyama)
