TheThe recession hit the United States hard and fast, reducing the economy by 32.9% in the second quarter alone, but some signs are beginning to point to a recovery. Unemployment, while still abysmal (PDF), is beginning to decline, and the stock market, despite a recent rough patch, has been rising overall since it crashed hard in February. Some financial experts have even explained that the end of the coronavirus cycle may be near, while Federal Reserve Chairman Jerome Powell warns that employment and economic health “remain well below their prepandemic levels” and that more help is needed.
Economists are beginning to warn of a possible “K-shaped recovery” that benefits those with higher education and income while struggling with fewer benefits. Many so-called “officials” have been able to move to work from home or they have returned to the office with new security measures in place. This is in stark contrast to restaurant servers and hotel employees, for example, whose industries have continued to shrink.
Many of the protections introduced early in the pandemic, such asand that , has dried up, despite the fact that almost 30 million American workers are still out of work. Food security now affects an estimated 29 million American adults (PDF) and nearly a third of all American families with children, and yet a federal food program is still set to expire on September 30.
Without oneon the way, what does the road to economic recovery look like from here? We have compiled the latest news about the coronavirus recession, where to find help, what makes a recession and the government’s response. Please note that this story is intended to provide an overview, not to serve as financial advice. It is often updated as the situation develops.
Latest coronavirus recession news
Where can you find additional resources for personal finance
If you have experienced financial difficulties as a result of the coronavirus recession, here are some tools to help you regain your financial balance.
When will the COVID recession end?
From an economic point of view, a recession ends when certain market requirements are met, which according to some estimates can happen about halfway through 2021. From a personal perspective, you may wonder most about your ability to work, pay your bills and secure your financial future.
Economists and health experts agree that the economy will not fully recover until the coronavirus pandemic is contained – but covid-19
, a or any combination of all three.
Several vaccine candidates have shown promise in human trials. Still, most people do not get one until sometime next year.
How the government has tried to support the economy
Theapproved as part of the CARES law in March represents the US government’s first attempt to counter a recession. The law on financial relief included for most U.S. taxpayers, as well as a loan program for companies to continue to pay their employees.
So far, attempts have been madehas stuck, with most analysts hoping for a deal decreases for the day.
However, the Federal Reserve has announced that it will continue to keep interest rates close to 0% until 2023, which often has the effect of encouraging more borrowing, leading to more spending – and more spending generally improves the economy.
How can I help others?
It is easy to feel helpless, but if you feel financially secure or have time to give, there are ways to make a difference. My CNET colleague Katie Conner has some excellent recommendations for, including free donations such as online volunteer work or blood donation, as well as ordering withdrawals or delivery and purchasing gift cards to the restaurant.
Other local businesses such as bookstores, garden centers, toy stores and shops may have a website where you can support them with an order.
The best advice I have heard so far on how you can individually help strengthen your finances is this: Spend to the best of your ability and within your resources.