NEW YORK (Reuters) – The U.S. economy will experience a “significant, historic” contraction in the second quarter before it starts to rebound, and unemployment will remain elevated at the end of 2020, Dallas Federal Reserve President Robert Kaplan said on Monday.
Kaplan said he projects that GDP will drop by an annualized rate of 35% to 40% in the second quarter and that it should start to recover in the second half of the year. The U.S. unemployment rate may have peaked and should decline over the summer, but could remain high near 8% at the end of the year, Kaplan said during a virtual discussion organized by the Money Marketeers of New York University.
(Reporting by Jonnelle Marte; editing by Jonathan Oatis)
