Economics
Fed’s Kaplan Sees Historic Contraction, Need For More Stimulus
- GDP will shrink 30% in second quarter, unemployment up to 20%
- Fed’s lending programs a bridge for companies, not stimulus
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The U.S. economy will likely need more fiscal stimulus as it weathers a “severe” contraction from the effects of coronavirus-prompted shut downs, according to Federal Reserve Bank of Dallas President Robert Kaplan.
“This is a historic contraction, very severe,” Kaplan said in an interview Friday on Fox Business Network. “There’s going to be a need for stimulus in the future. That’s likely to have to come from the fiscal authorities.”