Fed Evaluates Effects of Outbreak on US Economy

Fed Evaluates Effects of Outbreak on US Economy

  Dallas United States Central Bank (Fed) President Robert Kaplan made evaluations about the economic effects of the coronavirus outbreak affecting the world on the United States. Dallas United States Central Bank President Robert Kaplan drew attention to the necessity of incentive structures that predict a shrinkage that has never been seen in the US economy due to the effects of the coronavirus outbreak. Fed Dallas Branch President Robert Kaplan emphasized in the television program you are a guest, that a very effective shrinkage in the United States economy will be experienced in the second quarter of 2020 in line with the effects of the coronavirus outbreak. Robert Kaplan also stated that the gross domestic product of the United States would decrease by 30 percent in the second quarter of the year, but in addition to that, the economy will continue to grow towards the end of the year. Dallas Fed President Robert Kaplan said: “This year, the US economy will likely contract between 4.5 percent and 5 percent. This is a shrink never seen before. In the rest of the year, there is a need for incentives to develop and progress the economy more rapidly. Thanks to incentives, we can see a decrease in the unemployment rate. THE OUTBREAK CAN CREATE SERIOUS ADVANCES IN ECONOMY In addition, the Central Bank of the United States of America, Louis Branch President James Bullard stated in his statements in an American newspaper that the termination of businesses temporarily within the restrictions on coronavirus outbreaks may have profound and permanent negative effects on the US economy. Stating that this damage will be seen in the second quarter of the year in the economy of the United States, James Bullard stated that growth and development will be seen in the other period of the year. Branch President Bullard Fed St. Louis "You can temporarily end operations in the US economy, but maintaining too much time causes more problems to accumulate in the country, causing bankruptcies and job losses," he said . Underlining that the US economy is in great danger, Bullard emphasized the necessity of the start of economic activities.