New Covid surge heaps pressure on US economy

1st December 2020 (Last Updated December 1st, 2020 08:57)

1 December

Nouriel Roubini, an economist, shared an article on how the coronavirus surge in the US is leading to a double-dip recession and dollar crash, according to Yale University’s economist Stephen Roach.

He further adds that the rise in coronavirus cases is disrupting Wall Street’s hopes for a V-shaped economic recovery.

Rubini also predicted the US to economy to face further lockdowns in the days ahead, as he spoke to CNBC’s Trading Nation.

However, he also adds that these lockdowns may not be as severe than the ones in spring but could lead to undeniable damages and shock the global economy into recession. Roach therefore believes that investors should be vigilant.

Roach also predicts a temporary relapse in the economy, mostly in the beginning of 2021.

He has also warned of a 1% dip in gross domestic product (GDP) in the first quarter of 2021 but said it could be more significant.

He also warns of continued and intense pressure on the dollar, with the need for fiscal relief to address the economic crisis.

Read more