New Normal 2.0 for U.S. Economy Looks Awful, Long, Perilous

[marmar]

(Bloomberg) Get ready for the New Normal 2.0 -- or, more appropriately, 2-point awful.

The U.S. economy post-Covid-19 will look a lot like the one that struggled to recover from the 2008-09 financial crisis –- only in some ways worse.

Growth will be disappointingly tepid after an initial rebound and, for a time at least, inflation dangerously lower and unemployment heartbreakingly higher than they were back then. Government debt -– and the Federal Reserve’s balance sheet -– will be much bigger, while interest rates stay low.

“Our economy will have lost something of value,” said Nobel Prize-winning economist Joseph Stiglitz. “We will be scarred, and the recovery will be slow.” .........(more)

https://www.bloomberg.com/news/articles/2020-05-13/new-normal-2-0-for-u-s-economy-looks-awful-long-and-perilous