Yellen Hopes for ‘V’-Shaped Recovery But Braces for Worse Impact
- U.S. unemployment rate, GDP could reach Depression-era levels
- Recovery will be aided by U.S. economy’s pre-pandemic strength
Janet Yellen
Photographer: Justin Chin/BloombergThis article is for subscribers only.
Economic data in the U.S. could reach levels not seen since the Great Depression, but the country’s health preceding the coronavirus pandemic should place it in a good position for recovery, said former Federal Reserve Chair Janet Yellen.
Initial jobless claims reached nearly 10 million in the two weeks ended March 28, an “absolutely shocking” number that indicates the unemployment rate is probably about 12% to 13% and is moving higher, Yellen told CNBC in an interview on Monday. Gross domestic product could contract at least 30% in the second quarter, on an annualized basis, she warned.