As states across the country reopen their economies, people are forced to live alongside the virus. A coronavirus model closely watched from the Institute for Health Metrics and Evaluation at Washington University was updated on Wednesday and now forecasts nearly 170,000 deaths from coronavirus infection in the United States by October 1.
“If the United States is unable to verify growth in September, we may face deteriorating trends in October and November and the following months if the epidemic follows, as we expect, the seasonality of pneumonia,” said Christopher Murray, director of IHME, in a statement. statement.
According to Johns Hopkins University, the number of global cases continues to rise as well, with nearly 7.4 million confirmed cases reported. Brazil, Russia, the United Kingdom and India have the most cases after the United States. More than 415,000 people worldwide died.
Many investors were betting on the rapid recovery of the world’s largest economy. The Standard & Poor’s 500 Index climbed to this year’s positive territory earlier this week even when economists officially announced that the US economy was in recession. Nasdaq topped 10,000 points for the first time in history.
But the high number of coronavirus infections in the United States, along with the dire economic outlook from experts including the US central bank, indicates continued pain for companies and workers. It may become difficult to ignore the bleak outlook.
Stephen Ennis, chief strategist for global markets at AxiCorp, said Thursday that markets are having trouble digesting headlines that point to a new virus outbreak in the United States. A secondary outbreak is not a sneeze, He said.
The Federal Reserve indicated on Wednesday that it is unlikely to raise interest rates this year or next. Even in 2022, most central bank policy makers believe that interest rates will remain at current price levels.
“We are not thinking of raising interest rates – we are not even thinking of thinking about raising interest rates,” Federal Reserve Chairman Jerome Powell told reporters at a news conference.
The Fed does not expect economic hardships to stop anytime soon: It has updated its forecast for the year, anticipating a 6.5% drop in US GDP, the broadest measure of the economy, in 2020.
The central bank recognized the “enormous human and economic difficulties” caused by the epidemic. By December, the Fed expects the unemployment rate to drop to 9.3%, down from 13.3% in May, but still well above the 3.5% rate from February. Millions of people would not restore their old jobs, Powell said, “and there may not be a job for them for some time.”
Faith Karimi, Arman Azad, Joe Sutton, and Anken Tabi contributed to the reporting.