© Reuters. FILE PHOTO: Federal Reserve Bank of Richmond President Thomas Barkin poses during a break at a Dallas Fed conference on technology in Dallas
By Ann Saphir and Lindsay Dunsmuir
SAN FRANCISCO/WASHINGTON (Reuters) – The U.S. economy is set for a deep slide in coming months with the coronavirus forcing businesses to shut and putting millions out of work, but Federal Reserve policymakers are also warning of a slugging recovery once the pandemic subsides.
“Because of the shock of this… will consumer behavior just be more cautious?” Dallas Federal Reserve Bank President Robert Kaplan asked in a phone interview with Reuters on Wednesday.
“It’s not just the safety concerns… it’s also financial and potentially job insecurity which might cause them to save more and spend less.”
Such caution will mute the strength of the rebound and leave the world’s largest economy about 4% to 5% smaller at the end of…