The epidemic in the United States is serious. Why hasn't the American economy been dragged down?

As we all know, the epidemic situation in the United States is very serious, and it has become the country with the largest number of confirmed cases in the world, and it is still maintaining rapid growth. The American economy has been hit hard. In the second quarter, GDP dropped by over 30%, and the highest unemployment rate reached 14.7%. Before that, the unemployment rate in the United States remained at a low level of around 4%, and now the unemployment rate has returned to 10%. The impact of this epidemic on the United States is no less than an economic crisis.

For the American economy, the worst second quarter has passed, and the economic data in the third quarter has definitely picked up, showing signs of economic recovery. However, with the approach of winter, the epidemic situation in the United States is not optimistic, and it is likely that two large-scale epidemics will break out in winter, which is a huge blow to the American economy, that is to say, the test of the American economy is far from over.

The American economy has not been dragged down, mainly because of the dual support of monetary policy and fiscal policy. The American economy shows signs of recession. The Federal Reserve quickly adjusted its monetary policy, reduced the long-term interest rate to zero, and launched a large-scale QE at the same time, so as to make the dollar liquidity in the market sufficient, avoid the liquidity crisis caused by the shortage of dollars in the market, and affect the smooth operation of the economy. This wave of operations is almost the same as that after the 2008 financial crisis, but on a larger scale. It can be seen that the impact of this epidemic on the US economy is no less than the financial crisis in 2008.

At the same time, the U.S. Treasury Department issued the living allowance and economic stimulus bill for residents. On the one hand, it solved the problem of distributing cash and materials to residents to help them tide over the difficulties; on the other hand, it issued various favorable policies and took the lead in issuing several rounds of trillion-dollar economic stimulus bills to help enterprises recover. Although the epidemic has a great impact on the American economy, it is essentially different from the financial crisis, because its own economy is not in trouble, and its own health is only a change in the external environment. As long as the epidemic is under control, the economy will recover rapidly and the labor market will recover slowly. The strength of the subsequent economic recovery is still full of uncertainty. At present, the most critical moment has passed, and the subsequent economic recovery is more of a matter of time.

I'm Roswell Financial. Please pay attention to more questions. Welcome to exchange and discuss. I hope it helps you.