Covid-19 hit US economy already in recession: BofA; pegs job loss at 3.5 mn

US Federal Reserve urged not to restrict the quantum of stimulus measures

Coronavirus (Covid-19)-hit US economy has already sunk into recession, warned economists at BofA Securities in a recent report, though they expect this phase to be short-lived and see a bounce back in the third quarter (July–September) of 2020 (Q3-2020). In the interim, however, the research firm expects massive job losses and urges the US Federal Reserve not to restrict the quantum of stimulus measures.

“We believe that the US economy has fallen into recession, joining the rest of the world, and it is a deep plunge. We now expect the economy to collapse 12 per cent q-o-q seasonally adjusted annual