UBI WORKS:

The U.S. economy is recovering from the Covid-19 recession, but some economic "scarring" may take a long time to heal, said Richmond Federal Reserve Bank President Thomas Barkin.

Economic scarring refers to damage left behind by crises that will suppress growth prospects over the medium or long term.

"I'm hopeful we're on the brink of completing this recovery," Barkin said Monday at the Credit Suisse Asian Investment Conference that's being held virtually this year.

"Vaccines are rolling out, case rates and hospitalizations are falling, excess savings and fiscal stimulus should help fund pent-up demand from consumers who're exhausted by isolation and freed up by vaccines and warmer weather," he added.

The U.S. economy contracted by 3.5% in 2020 compared to a year ago, estimated the Bureau of Economic Analysis. The Organisation for Economic Cooperation and Development or OECD said earlier this month that the U.S. economy is forecast to grow by 6.5% this year and 4% next year.

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