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US economy likely to shrink by 4% in Q1, down by 14% in Q2: JP Morgan

The forecast assumes the Fed will continue to find "creative" ways to support the economy and that the Trump administration and Congress deliver fiscal support of $1 trillion

Reuters  |  San Francisco 

Donald Trump
US President Donald Trump speaks to reporters as hearrives for the 74th session of the United Nations General Assembly at UN headquarters in New York City. Photo: Reuters

The could shrink 4% this quarter and 14% next quarter, and for the year is likely to shrink 1.5%, a economist said on Wednesday, in one of the most dire forecasts yet issued for the potential hit from the epidemic.

US chief economist Michael Feroli also forecast unemployment to rise to 6.25% by the middle of the year before easing to about 5.25% by year end as economic growth restarts.

The forecast assumes the Fed will continue to find "creative" ways to support the and that the Trump administration and Congress deliver fiscal support of $1 trillion.

First Published: Thu, March 19 2020. 00:43 IST
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