US may face ‘jobless recovery’ despite huge stimulus

Economists warn fiscal stimulus has been poorly targeted; Ben Bernanke defends Fed policy

US Federal Reserve chairman Ben Bernanke
Ben Bernanke

The US could be facing a “jobless recovery” from the Covid-19 crisis, as traditional tools of economic policy are proving ineffectual, several senior US economists warn.

Raj Chetty, professor of economics at Harvard University, said on January 3 that high-frequency data on spending and employment suggested a very uneven recovery. This could mean the overall economy returns to growth even as unemployment remains stubbornly high – a jobless recovery.

Speaking at the annual conference of the

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