Limitations caused by a coronavirus, in the second quarter of 2020 (the period from April to June — Ed.) can lead to increased unemployment in the United States up to 30% and GDP could fall by an unprecedented 50%.
Such predictions voiced by the President of the Federal reserve Bank of St. Louis, James Bullard, reports Bloomberg.
Reportedly, Bullard urged to give strong financial response for compensation of 2.5 trillion dollars of lost revenue in this quarter, to ensure the US recovery. He added that the fed is ready to do more to ensure the functioning of markets in a period of high volatility.
According to the publication, the forecast of the fed says about the urgent need for Congress and the White house as soon as possible to arrange a large-scale program of assistance. Last week the fed cut interest rates almost to zero, promising to increase its Treasury obligations by at least $ 500 billion, and mortgage-backed securities at least $ 200 billion.
“It is planned, organized partial shutdown of the US economy in the second quarter. The overall goal is to keep all households and enterprises in General with the help of state support. It’s a huge shock and we are trying to deal with it and keep it under control,” said James Bullard.