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Fed official warns US economic rebound could stall

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US markets snapped a fiveday winning streak overnight amid a warning from a senior Federal Reserve official that the surge in coronavirus cases in many states poses a threat to the US economic recovery. Raphael Bostic, president of the Federal Reserve Bank of Atlanta, speaking to the Financial Times, said that data he is seeing suggests the trajectory of this recovery is going to be a bit bumpier than it might otherwise. Bostics district includes many of the areas worst affected by the wave of new cases, including Florida. In a note to clients, investment bank Jefferies also warned earlier this week that its own economic activity index has flatlined for the past three weeks, with momentum lost across a range of economic sectors. Given the timing of the hit, official June economic data is likely to be spared, but there is a clear downside for July, the note said.