Economists at JPMorgan, America's biggest bank, said the severity of the pandemic would likely result in a 40 percent drop in the country's gross domestic product (GDP) and lead to a jobless rate of 20 percent.
“We don’t know exactly what the future will hold—but at a minimum, we assume that it will include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008,” he said.
The country wasn’t prepared for a pandemic, but “we can and should be more prepared for what comes next,” he added.
But JPMorgan economists, as well as Bank of America and Goldman Sachs, all expect a sharp rebound after the pandemic subsides.
Efforts to give the U.S. economy the best chance for a sharp bounceback have come from a historic COVID-19 relief bill, as well as recent measures by the Treasury and Federal Reserve to channel money to America's small and medium-sized businesses to encourage them not to lay people off.
Separately, Fed Chairman Jerome Powell said the central bank will continue to use all the tools at its disposal until the U.S. economy begins to rebound fully.
Speaking in a webcast from the Brookings Institution on April 9, Powell said the Fed fully intends to use its powers “forcefully, proactively and aggressively until we are confident that we are solidly on the road to recovery.”
“I think we’re going to open up strong. I think we’re going to open up very successfully, and, I’d like to say, even more successfully than before,” Trump said, adding that, “We’re going to be opening up … very, very, very, very soon, I hope.”