US: Economy will rebound when the pandemic begins to ebb

The US economy will rebound once curbs are removed and confidence restored, Joseph Trevisani, an analyst at FXStreet informs.

Key quotes  

“Consumption in the entire consumer sector, especially discretionary spending, will pull back.  In an economy where 70% of activity derives from consumers’ choices any drop in spending translates directly to GDP.”

“The earlier recessions have interesting parallels to the current situation. Both were caused by government action, which was largely responsible for economic downturns.”

“As the economy and consumer sentiment rebounded sharply in 1982, so will consumer sentiment, spending, and the economy rebound, when the pandemic begins to ebb. Were that to happen before the end of the second quarter there will be no recession in the following three months.”