Bank of America: Prepare for the Deepest Recession in History

Bank of America: Prepare for the Deepest Recession in History

Bank of America stated that the US economy will contract in the next three quarters due to the coronavirus pandemic, and the deepest recession to date will be experienced. Economists led by Michelle Meyer wrote in their article in previous reports; they lowered the US growth estimates due to the coronavirus epidemic that caused thousands of deaths. The bank announced that they expect a contraction of 7 percent in the first quarter of this year, 30 percent in the second quarter and 1 percent in the third quarter. "We expect the cumulative decline in GDP to reach 10.4 percent and this will be the deepest recession," the statement said. The agency also noted that there may be more losses in the employment market. It was stated that there could be nearly 20 million job losses due to the crisis and the unemployment rate could reach 15.6 percent. The White House and the US Central Bank made a statement; They stated that they took important steps to prevent the damage caused by the virus pandemic. While US President Donald Trump has announced a support package of over $ 2 trillion, the Fed has taken steps beyond the 2008 crisis.