UNITED STATES (OBSERVATORY NEWS) — Former US Federal Reserve Chairman Janet Yellen said that depending on how widespread the coronavirus is, the economic impact could have a significant impact on Europe and push the US into recession. It is reported by Bloomberg.
“We can see a significant impact on Europe, which was weak from the start, and it is possible that this could lead the US to a recession,” Yellen said at an event in Michigan.
“If he (the coronavirus – ed.) Does not deliver a significant blow to the United States, this is less likely. We had a pretty solid prognosis before this happened, and there is some risk, but overall I think that the prospects for the United States look pretty good,” she added.
According to Yellen, the global economy was weak, but began to recover before the virus spread. The closure of factories due to the outbreak of the virus in China will affect supply chains, while consumer spending will decrease due to quarantine and travel restrictions.
Given the outbreaks of the virus around the world, representatives of the National Center for Disease Control and Prevention (CDC) this week warned that the spread of coronavirus in the US is inevitable , although it is not known how serious its impact will be.
At the same time, White House chief economic adviser Larry Cadlow said the US economy will be able to withstand any shocks from the global spread of COVID-19.
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
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