2. The growing coronavirus recession threat
In just a matter of weeks, top economists and investment bank analysts have gone from expecting the coronavirus outbreak to have minimal impact on the U.S. economy to warning that an outright recession may be on the horizon, Axios' Dion Rabouin reports.
What's happening: The spread of confirmed coronavirus cases in Europe, the Middle East and the U.S., and the speed at which they are being discovered, has set the table for the outbreak to have a larger and much costlier impact on the U.S. and the rest of the world.
Between the lines: The outbreak threatens consumer-oriented businesses like restaurants, bars and travel, which have held up the U.S. economy as business investment has turned negative and the manufacturing sector has fallen into recession, largely as a result of the U.S.-China trade war.
What they're saying: Business investment, which had declined through the last three quarters of 2019, could be further hit, Constance Hunter, chief economist at KPMG, tells Axios.
- "If the virus spreads within the U.S. in any meaningful way, that is going to have a negative impact."