US economy could shrink as coronavirus surges: Fed Reserve Bank Prez Kaplan

(Reuters) - Dallas Federal Reserve Bank President Robert Kaplan on Thursday said the economy could shrink this quarter as consumers in more states and cities pull back from economic activity amid the record coronavirus case surge. "It is possible we could have negative growth if this resurgence gets bad enough and mobility falls off enough," he said, pointing to a drop in activity already visible in places like El Paso, Chicago, Utah, Wisconsin, and Colorado.

"The next couple of quarters is going to be very challenging." Kaplan.

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