US Economy is badly hurt by the out break of coronavirus. According to experts US economy has made it's way towards the recession. The most fiery thing is that how is US going to recover from it as almost 80 million of worker are forced to stay at home and all businesses are almost reached to halt.
The U.S. is entering a recession. The ultimate fear is that could turn into a protracted malaise that has some flavor of a depression.
That’s far from the base case, with many analysts and investors taking heart from signs of revival in the original epicenter of the coronavirus -- China -- and predicting a second-half upturn in the U.S. after the contagion hopefully subsides.
But as business activity halts and layoffs surge, some prominent economy watchers -- including former White House chief economists Glenn Hubbard and Kevin Hassett and former Federal Reserve Vice Chairman Alan Blinder -- have drawn comparisons to the Great Depression, though they’ve stopped well short of forecasting another one.
The U.S. undoubtedly will suffer a huge economic contraction as businesses close and Americans stay home. By some estimates, the economy is headed toward its worst quarter in records since 1947. JPMorgan Chase & Co. expects gross domestic product to shrink at an annualized rate of 14% in the April-June period while Bank of America Corp. and Oxford Economics both see a 12% drop. Goldman Sachs Group Inc. sees a 24% plunge.
In a Bloomberg interview on Sunday, Federal Reserve Bank of St. Louis President James Bullard predicted the unemployment rate may hit 30% in the second quarter because of shutdowns to combat the coronavirus, with an unprecedented 50% drop in GDP.
According to NYT, Just as there is a public health strategy driving the government orders closing businesses and limiting daily activity outside the home, there is also an economic strategy for putting large parts of the economy on ice. It requires aggressive action by the federal government, funded by what would be the most expansive borrowing the country has seen since World War II.