2020.07.0705:20:00UTC+00Fed's Bostic Warns US Recovery May Be Stalling: FT

US economic recovery may be "leveling off" as activity could be dampened amid a recent surge in coronavirus infections, Raphael Bostic, president of the Federal Reserve Bank of Atlanta, said in an interview to the Financial Times.

Bostic cited high-frequency data that signaled that the economic activity may be stalling both in terms of business reopenings and mobility, the interview published on the FT website on Tuesday said.

"There are a couple of things that we are seeing and some of them are troubling and might suggest that the trajectory of this recovery is going to be a bit bumpier than it might otherwise," Bostic told FT.

The Fed is watching the trends very closely to understand exactly what's happening, he added.

On Monday, analysts at Goldman Sachs projected that the US economy is set to shrink at a faster rate this year than expected earlier. They expect the economy to be back on track in September.

Analysts at the investment bank said the healthy rebound in consumer services spending seen since mid-April appears likely to stall in July and August as authorities impose further restrictions to contain the Covid-19 spread.