U.S. second-quarter GDP plunged by worst-ever 31.7%
- 4 years ago
'역대최악' 미 2분기 성장률 -31.7%…속보치보다는 감소폭 줄어
The latest data on the U.S. economy shows the worst quarterly drop on record in the second quarter ,... as its GDP from April to June plunged more than 30 percent on an annualized basis.
The Federal Reserve has also rolled out a sweeping rewrite of its approach to monetary policy,... putting new emphasis on bolstering the labor market and less on inflation.
Lee Seung-jae reports.
According to the U.S. Commerce Department's second reading of the U.S. economy in the second quarter,... the nation's GDP plummeted a record 31-point-7 percent on an annualized basis.
The announcement on Thursday was revised down from the 32-point-9 percent initial estimate.
Even with the better-than-expected revision,... it's still the worst ever economic contraction in U.S. history.
The drop was also more than three times the previous all-time decline of 10-percent in 1947.
Many expected such negative data,... as last quarter,... businesses shuttered and millions of workers lost their jobs,... as the world's largest economy went into lockdown due to the COVID-19 pandemic.
The U.S. economy dropped an annualized 5-percent in the first three months of the year,... before the COVID-19 outbreak began to make its presence felt in the U.S. in February and March.
This comes as the U.S. Federal Reserve announced a major policy shift on Thursday,... saying it is willing to allow inflation to run above its goal of 2-percent "for some time".
The strategy suggests the Fed's key overnight interest rate,... which is already at near zero,... will stay there for potentially years to come,... as policymakers shift their stance regarding higher inflation.
The Fed will instead focus more on bolstering the U.S. labor market.
Fed Chairman Jerome Powell said that despite a "lot of strength in the economy",... the job recovery faced a "long tail" of a couple of years,... as millions of American workers have been displaced from restaurant, travel, and similar jobs,... and will struggle to find new employment and will need steady support from the government.
Lee Seung-jae, Arirang News.
The latest data on the U.S. economy shows the worst quarterly drop on record in the second quarter ,... as its GDP from April to June plunged more than 30 percent on an annualized basis.
The Federal Reserve has also rolled out a sweeping rewrite of its approach to monetary policy,... putting new emphasis on bolstering the labor market and less on inflation.
Lee Seung-jae reports.
According to the U.S. Commerce Department's second reading of the U.S. economy in the second quarter,... the nation's GDP plummeted a record 31-point-7 percent on an annualized basis.
The announcement on Thursday was revised down from the 32-point-9 percent initial estimate.
Even with the better-than-expected revision,... it's still the worst ever economic contraction in U.S. history.
The drop was also more than three times the previous all-time decline of 10-percent in 1947.
Many expected such negative data,... as last quarter,... businesses shuttered and millions of workers lost their jobs,... as the world's largest economy went into lockdown due to the COVID-19 pandemic.
The U.S. economy dropped an annualized 5-percent in the first three months of the year,... before the COVID-19 outbreak began to make its presence felt in the U.S. in February and March.
This comes as the U.S. Federal Reserve announced a major policy shift on Thursday,... saying it is willing to allow inflation to run above its goal of 2-percent "for some time".
The strategy suggests the Fed's key overnight interest rate,... which is already at near zero,... will stay there for potentially years to come,... as policymakers shift their stance regarding higher inflation.
The Fed will instead focus more on bolstering the U.S. labor market.
Fed Chairman Jerome Powell said that despite a "lot of strength in the economy",... the job recovery faced a "long tail" of a couple of years,... as millions of American workers have been displaced from restaurant, travel, and similar jobs,... and will struggle to find new employment and will need steady support from the government.
Lee Seung-jae, Arirang News.