![]() ![]() ![]() The Fed took bold steps to support the recovery. And we want to make that rebound as vigorous as possible.” So, in principle, if we get the virus spread under control fairly quickly, then economic activity can resume. This is a situation where people are being asked to step back from economic activity, close their businesses, stay home from work. “Quite the contrary, the economy performed very well right through February. “There's nothing fundamentally wrong with the economy,” Federal Reserve (Fed) Chair Jerome Powell ( 2020a) said in a March 26th interview. The nature of the downturn also differed significantly from the previous recession. For comparison, the annualized growth rate from 2007‐Q4 to 2009‐Q2, a peak‐to‐trough known as the Great Recession, was just −3.7%. Annualized real gross domestic product (GDP) per capita, which stood at $58,490 in 2019‐Q4, fell to $57,691 in 2020‐Q1 and $52,387 in 2020‐Q2-an annualized growth rate of −24.7%. The unemployment rate jumped to 14.7% in April 2020. Growing fears of a pandemic followed by stay‐at‐home orders and other restrictions on businesses and consumers prompted a huge decline in economic activity. The economic contraction beginning in March 2020 was the sharpest on record.
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