U.S. recession chances now at 80% despite Fed emergency moves says Reuters Poll

The coronavirus crisis has almost certainly ended the longest U.S. expansion on record and pushed the economy into the start of a short slump, according to analysts polled by Reuters who gave a median 80% chance of recession this year.

The Federal Reserve in an emergency move on Sunday slashed interest rates back to near-zero and restarted its asset purchases program, and since then has added trillions of dollars of liquidity to keep markets functioning.

But that will not be enough to prevent a recession, even though economists for now appear to think the blow will be punishing but temporary, with most expecting at least a modest rebound in the second half of the year.

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