Fed Chairman Powell: Not clear yet whether the Delta strain will have important effects on the economy

(TheLibertyRevolution.com)- Will the Delta variant of COVID-19 have a major impact on the American economy?

That’s a pertinent question that many people around the country are hoping to hear a solid answer to. For now, though, not even the top financial experts in the government have a clear picture on the subject.

On Tuesday, Jerome Powell, the chairman of the Federal Reserve, said he wasn’t sure what the financial impact of the Delta variant will be, and whether it would have a major impact on the U.S. economy from a broad perspective.

He did, however, shed some positive light on the subject, saying businesses and consumers have been very resilient throughout the entirety of the ongoing pandemic.

Powell held a virtual session with teachers and students in a question-and-answer format on Tuesday. During that virtual session, he said:

It’s not yet clear whether the Delta strain will have important effects on the economy.”

In addition, he said that though “COVID is still with us … and that is likely to continue to be the case for a while,” the recent outbreaks fueled primarily by the Delta variant might not weigh down the U.S. econom heavily because “people and businesses have improvised and learned to adapt, to live their lives despite COVID.”

In other words, almost a year-and-a-half into the pandemic, American businesses and consumers have learned how to live with COVID, which could reduce more monumental impacts to the economy — even with serious variants such as Delta.

At the beginning of the pandemic, the outbreak had a huge impact on the U.S. economy. But, people began to adjust to it — out of necessity — which helped the economy recover to what it is today.

Still, many people are worried that the surge in COVID-19 cases across the country as a result of the Delta strain could significantly impact America’s continued economic recovery.

In light of the recent surge in cases, cities and states haven’t started to place new restrictions on businesses or full-blown lockdowns. Some areas have begun to implement vaccine mandates for patrons of certain indoor businesses.

However, some major concerns are eventual school closures in the fall and a decline in consumer confidence — both of which could negatively impact business activity and job gains.

At this point, many economists side with Powell’s recent comments. They say it’s too early yet to tell whether the Delta variant will have a huge impact on the broad U.S. economy.

Looking at July’s jobs report alone would show some reasons for optimism. There was a gain of 943,000 jobs last month.

The issue with that report, though, is that it’s trailing data. That information was collected for the report before the Delta variant exploded, and before health officials at the federal level urged every American to wear a mask indoors, regardless of whether they were vaccinated or not.

At the same time, data isn’t showing an economic slowdown. So, maybe those concerns are indeed premature.