The record-long U.S. economic expansion is over

The record-long U.S. economic expansion is over. Gross domestic product contracted at a 4.8% annualized rate in the January-March period, the largest drop since 2008, according to Commerce Department data released Wednesday. The median projection in a Bloomberg survey of economists had called for a 4% drop. (Bloomberg)

Bank Indonesia Governor Perry Warjiyo said that the quantitative easing conducted by BI to banks will only have an impact on the economy if the fiscal stimulus by the Ministry of Finance is also being conducted faster in the real sector. The total of quantitative easing released by BI from January- April 2020 was Rp386 trillion from a total of Rp503.8 trillion. The Rp503.8 trillion figure is the amount of quantitative easing from January to April, Rp386 trillion plus a reduction in the Statutory Reserves (GWM) of Rp117.8 trillion as of May 2020. (Ministry of Finance)

Source: Danareksa Sekuritas Debt Research


Image: Atlanta, United States
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