The GDP of the United States of America may collapse by 20-30%, said the head of the Federal Reserve System (fed), Jerome Powell, on May 18 in an interview with CBS.
According to Powell’s forecasts, the US GDP is facing a severe fall at the end of the second quarter of 2020. “It can be about 20 or 30 (percent),” the Manager said. Unemployment in the States may rise to 25%, which is one and a half times more than the figures called by the US Department of labor.
The head of the Federal Reserve suggested that the country’s leadership will be forced to extend financial assistance to families for a period of three months to six months so that citizens can cope with the consequences of the economic decline caused by the COVID-19 pandemic. In turn, the fed and Congress will need to strengthen measures to support residents, Powell said.
The head added that the US economy would gradually recover after the pandemic. All this depends on how quickly the authorities will cope with the consequences of the crisis in health care, the head of the Federal Reserve believes.