There’s still a good amount of fear in this crazed market.
All after Federal Reserve Chairman Jerome Powell said the pace of the U.S. downturn is “without precedent” and cautioned a recovery could take longer than expected. He also said the U.S. may need additional support to pull the U.S. from the brink.
“The scope and speed of this downturn are without modern precedent, significantly worse than any recession since World War II,” Powell said, as quoted by The Wall Street Journal. “Additional fiscal support could be costly but worth it if it helps avoid long-term economic damage and leaves us with a stronger recovery.”
All thanks to the COVID-19 pandemic that has stalled the global economy.
Unfortunately, the longer this health risk sticks around, the more likely businesses will fail, and households will be strapped for income Powell added. The U.S. just lost 20.5 million jobs in April 2020. More than 33 million have now claimed jobless benefits since March 2020.
Worse, some analysts believe the U.S. economy could shrink 40% on an annualized basis in the second quarter of the year.