Odds of a recession in US economy at 100%, unprecedented rise in unemployment benefit claims: Report

As per a model designed by Bloomberg Economics to assess the chances of the American economy entering a recession, the country's economy has already hit the bottom.

The report noted that the odds of a recession in the American economy currently stand at 100 percent.

The number of jobless claims filed in the US have reportedly witnessed a rise in the last two weeks of March, with nearly 10 million such claims filed in the said period. Claims for unemployment benefits in the country also peaked at the end of March, an unprecedented rise, according to the report.

The model looks at factors like filings for unemployment benefits, jobless claims and the situation of the financial markets.

This comes at a time when the death toll due to the outbreak of COVID-19 has claimes over 11,000 lives in the country. The restrictions put in place to contain the spread of the coronavirus in the US has also brought activity in the country to a halt, much like the situation in almost every other country across the globe. The pandemic has battered global financial markets and has hit the world economy.

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The report cites projections by analysts, according to which the American economy will see its largest-ever contraction in the second quarter. As many as 20 million people could lose their jobs by the month of July.

The US Federal Reserve and the government have taken steps aimed at cushioning the blow dealt by the ongoing outbreak, with the central bank having slashed policy rates to virtually zero.