The US economic recovery could take 'just 4 or 5 years' if coronavirus is controlled, Fed president says

• The US could see a quicker economic recovery from the coronavirus pandemic recession if the virus is contained, said Mary Daly, president of the Federal Reserve Bank of San Francisco.
• If there's a mitigation strategy or vaccine that allows reengagement in economic activity, "Then it could take just four years or five years," Daly said Wednesday during a virtual event with The Washington Post.
• But, ultimately, the virus will decide the pace of recovery, she said. A more pervasive, long-lasting hit to the economy would make a recovery take longer.
• Read more on Business Insider.

The US could see a quicker economic recovery from the coronavirus pandemic recession if the virus is contained through public measures or a vaccine, according to Mary Daly, president of the Federal Reserve Bank of San Francisco.

"If we can get the public health issues under control either through a really robust mitigation strategy or a vaccine, then we can reengage in economic activity really quickly," Daly said Wednesday during a virtual event with the Washington Post. "Then it could take just four years or five years. But if we end up with a pervasive, long lasting hit to the economy, then it could take longer."

Earlier this month, Daly said that the US can't wait another 10 years for an economic recovery to reach everyone. The US officially fell into a recession in February, according to the National Bureau of Economic Research, ending a record-long economic expansion that began after the 2008 financial crisis.

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There have been some recent positive signs of a rebound. Retail sales surged 17.7% in May, ADP data showed US companies added more jobs in June, and a gauge of manufacturing activity jumped the most since 1980 this month.

Still, Daly "would hesitate to call this a recovery," she said. That's because "ultimately the virus will determine the pace at which we can go," she said.

As states across the country reopen, there have been increasing coronavirus cases that've sparked fears of a second wave that could derail the economic recovery. More than 12 states have paused or rolled back reopening plans in an effort to get new COVID-19 cases under control.