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The Covid-19 plague has severely hurt economic activity and employment in the U.S. economy. This is a result of the necessary, though belated and misguided public health policies put in place to mitigate and control the spread of the virus. Real gross domestic product (GDP) declined at a 5% annual rate in Q1 of 2020. GDP will – without doubt –  continue to contract at an unprecedented pace in the second quarter. (US Q1 GDP Estimates – Negative Growth as Economy Retracts, Trade to Plunge as COVID-19 Upends Global Economy)

Recently some indicators suggest a stabilization or even a tiny rebound in some segments of the economy, such as retail merchandise and motor vehicle sales. Employment rose in many sectors of the economy in May and the unemployment edged down as some workers returned to their jobs from temporary layoffs.

 “Activity in many parts of the economy has yet to pick up, however, and overall, that put us far below earlier levels. Moreover, despite the improvements seen in the May jobs report, unemployment remains historically high. Weak demand, especially in sectors most affected by the pandemic, is holding down consumer prices,” said Jerome Powell, chair of the Federal Reserve Board of Governors.
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