St. Louis Fed Has Dire Prediction for the Economy
March 23, 2020
The president of the Federal Reserve Bank of St. Louis James Bullard is warning that the U.S. unemployment rate could reach as high as 30% in the second quarter and that GDP could fall by as much as 50%. Bullard’s predictions came along with a call for a massive fiscal response to replace the estimated $2.5 trillion in lost income and ensure a strong economic recovery.
The view from the St. Louis Fed is far more dire than Wall Street’s predictions. Bank of America and Oxford Economics both anticipate a 12% drop.