Coronavirus downturn has been rapid and sharp, says former Fed head Janet Yellen

Talking of the employment sector, Yellen said she was expecting higher percentages of unemployment due to the coronavirus outbreak.

FP Trending March 31, 2020 15:13:36 IST
Coronavirus downturn has been rapid and sharp, says former Fed head Janet Yellen

Former US Federal Reserve chairperson Janet Yellen has said the economic downturn due to the coronavirus pandemic has been “rapid and sharp” and is “different” than any the country has faced.

 <span class=Coronavirus downturn has been rapid and sharp says former Fed head Janet Yellen" width="380" height="285" />

Former US Fed chair Janet Yellen Reuters

Speaking at an online seminar hosted by the Brookings Institution, a research group based in Washington, Yellen said, “Every indication so far suggests there will be a huge plunge in output in the second quarter.”

“The decline will be reported in annual rate and could easily be 20 percent,” said the former federal reserve chief at the Webinar: COVID-19 and the Economy.

Yellen added that all the restrictions and lockdown could be lifted in the US by May after which things would come back to normal. However, she mentioned that “a longer period of confinement certainly [seemed] possible” as there could be a second wave of infections once the activities resume.

Talking of the employment sector, Yellen said she was expecting higher percentages of unemployment due to the coronavirus outbreak.

Click here for coronavirus Outbreak LIVE updates

“The depth of the recession, I think, will partly depend on what happens to overall financial conditions,” she said, adding that the coronavirus pandemic has already caused a significant “financial tightening”.

But she also mentioned that it was impossible to know at this point how deep the recession will be.

The depth of economic recession would depend on the length of the period for which the social distancing measures stay in place.

Updated Date:

also read

Firstpost Explains: Two golds? Two silvers? How COVID-19 could make hockey event at Tokyo 2020 an unusual affair
Sports

Firstpost Explains: Two golds? Two silvers? How COVID-19 could make hockey event at Tokyo 2020 an unusual affair

Two golds in hockey at Tokyo 2020? Two silvers? Firstpost Explains how COVID-19 could make the hockey tournament at Tokyo Olympics an unusual affair

'We are overjoyed': Pilgrims arrive in Mecca for second scaled-down hajj of pandemic
World

'We are overjoyed': Pilgrims arrive in Mecca for second scaled-down hajj of pandemic

This year's hajj, with participants chosen through a lottery, is larger than the pared-down version staged in 2020 but drastically smaller than in normal times

No deaths due to lack of oxygen specifically reported by states, UTs during second COVID wave, Centre tells RS
India

No deaths due to lack of oxygen specifically reported by states, UTs during second COVID wave, Centre tells RS

Minister of State for Health Bharati Pravin Pawar noted that health is a state subject and states and UTs regularly report the number of cases and deaths to the Centre