Dallas Fed President Kaplan Comments on US Economy

Dallas Federal Reserve President Robert Kaplan shared his thoughts on the impact of the coronavirus pandemic on the US economy, stating that

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Dallas Federal Reserve President Robert Kaplan shared his thoughts on the impact of the coronavirus pandemic on the US economy, stating that it could drive a significant and historic contraction during the current quarter. However, he expressed optimism that recovery after the downturn will begin after Q2 2020, even as unemployment levels are expected to remain at record highs until the end of the year.

According to Kaplan’s estimates, the economy could contract by anywhere between 35% and 40% during Q2, but economic recovery could resume into the second half of the year. Containing the spread of the virus as the economy recovers is crucial to preventing further damage to the economy, and the responsibility for this lies with businesses as well as consumers.

Kaplan made these comments during a virtual discussion, adding, “If people wear masks widely, if we have extensive testing and contact tracing, if businesses and us as individuals follow good procedure, we’re going to grow faster.”

He estimated that while unemployment could start improving into the second half of this year, it could average at around 8% by the end of 2020. Meanwhile, inflation is expected to continue remaining weak and not pick up for at least the next couple of years.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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