What many view as the cure to the current economic downturn could spur a far worse outcome, Moody's chief economist Mark Zandi warned.
Recent economic data suggests the US is already on its way to a prolonged slump. The Bureau of Labor Statistics reported on Friday that the unemployment rate spiked to 14.7% from 4.4% in April, with nonfarm payrolls sinking by 20.5 million. US joblessness now sits at its highest since World War II and is nearing peaks not seen since the Great Depression.
Hiring could bounce back starting in late May as businesses resume activity, the economist predicted, but lasting risk will weigh on economic activity for months to come.