, could also shrink the U.S. economy by up to four percent this quarter, the biggest slump for more than a decade, a financial advisory group has warned.
The Federal Reserve could stave off some of the damage by further rate cuts, but Capital Economics' gloomy prediction is that second-quarter GDP in the U.S. would fall by four percent and then stagnate in the third quarter. Traders work on the floor of the Jeenah Moon on March 12, 2020 in New York City. The Dow Jones Industrial Average dropped 2,352 points, an almost 10 percent decline and biggest since 1987. The U.S. GDP could slump in the second quarter by as much as four percent according to one prediction."We think this is going to have a very significant impact on activity over the next few months," said Andrew Hunter senior U.S. economist at Capital Economics.
"In terms of a single quarter, at the moment, we don't think overall things will be as bad as the financial crisis [of 2008] where the recession lasted for 12 to 18 months. We are still hopeful we could return to positive growth by the end of the year.
The markets will embrace that news Monday morning.
At least toilet paper stocks are up.
Joe Biden still loses in November.
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