However, he then added "For the economy to fully recover people will have to be fully confident, and that may have to await the arrival of a vaccine," and that a full recovery could take until the end of 2021. So while no Great Depression in his eyes, no V-shape either, and no return to normality until medicine or nature step up to the plate. That looks a timely call as Friday saw retail sales collapsed the most on record in April.

Powell also reiterated that he was not of the view that negative rates will be useful in the US, but that there is a lot more the government can do, perhaps via direct support to states and municipalities. Moreover, he stressed there is a lot more the Fed can do too – so yield curve control and more QE? At least that's what he's most likely to explain to the Senate when he testifies tomorrow.