Former Federal Reserve Chairwoman Janet Yellen gave a shocking forecast on Monday, April 6, saying that the U.S. economy could decline by 30% in the second quarter and the unemployment rate is already at 12%-13%.
In an interview with CNBC, Yellen said the CCP Virus pandemic is putting the world’s largest economy in an “absolutely shocking” downturn that is not reflected yet in the current data.
“If we had a timely unemployment statistic, the unemployment rate probably would be up to 12 or 13% at this point and moving higher,” Yellen said.
She added that the extent of the economic crash amounted to a loss of “at least 30%” in gross domestic product (GDP) for the second quarter, but the figures could be even worse.
According to the former U.S. central bank leader, those numbers look like a depression though they were “in a very different form” from the Great Depression.
“This is a huge, unprecedented, devastating hit, and my hope is that we will get back to business as quickly as possible,” she said.
Yellen expressed some doubt as to whether the U.S. recovery will look like a “V,” when it is reopened after the virus crisis.
The recent economic data looked pretty bleak. Friday’s monthly job report from the Labor Department showed that unemployment increased from 3.5% in February to 4.4% in March.
A record 10 million Americans filed initial jobless claims in just past two weeks, and nonfarm payrolls decreased by 701,000 in the period through March 12.
The global pandemic of the CCP Virus has now killed nearly 9,700 people in the United States as of Monday morning, according to data from Johns Hopkins University. The United States is, by far, the hardest-hit country with more than 338,900 diagnosed cases of the virus, which originated in Wuhan, China.