The worst is yet to come. Says so Federal Reserve. The latest projections of the Fed They warn that unemployment in the US economy can go up to 32% due to the coronavirus.
In total, a total of 47 million jobs would be destroyed by the downturn in the economy due to the outbreak. This projection is even worse than that of James Bullard, chairman of the St. Louis Fed, last week. Back then, he anticipated a strike of up to 30%.
“These are historical figures, just like the shock we are experiencing,” acknowledges Fed economist Miguel Faria in one of his last speeches.
A record 3.3 million Americans signed up for the strike in the week of March 21. Economists anticipate another 2.65 million additional unemployed this week.
If the worst-case scenario anticipated by the Fed were met, the number of unemployed in the US would climb to 52.8 million, tripling the peak of millions of unemployed people recorded in the Great Recession. If we take into account the unemployment percentage, 30% would also exceed the 24.9% recorded at the time.