Bank of America’s top U.S. economist on Thursday warned that the country is now in a recession in a note to investors.
CNBC reported that Michelle Meyer wrote in a letter to the company’s clients that the U.S. economy is in a “deep plunge” brought on by the global coronavirus outbreak, which has sickened thousands across the country and more than 200,000 globally.
“We are officially declaring that the economy has fallen into a recession … joining the rest of the world, and it is a deep plunge,” Meyer reportedly wrote. “Jobs will be lost, wealth will be destroyed and confidence depressed.”
Meyer did add that while “the decline is severe, we believe it will be fairly short lived.”
The solution to the economic slowdown, she continued, was aggressive economic stimulus action taken in the next few weeks.
“When it comes to the policy response, there should be no upper bound for the size of stimulus, in our view,” she reportedly wrote.
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Bank of America warns that the US is now in a recession https://t.co/WNuucsjNy2 pic.twitter.com/GKaNNU6WdS
— The Hill (@thehill) March 20, 2020
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