The US government’s estimate of the second-quarter fall in the gross domestic product was the sharpest such drop on record dating back to 1947, though slightly less bad than expected.
IMF warns that the brunt of the economic impact is being borne by lower income families, predominantly Black and Hispanic, who are least able to weather the downturn.
The high level of layoffs are occurring as a spike in Covid-19 cases has forced six states to reverse their move to reopen businesses.
A prominent US Republican senator Lindsey Graham, who enjoys close ties with President Donald Trump, advocates for a free trade agreement between the two countries, saying it could help both reap economic benefits.
The move will affect 525,000 jobs in the US, which is currently reeling from a high unemployment rate caused by the coronavirus pandemic.
The pullback extended the week's pattern of volatility after a big rally day Monday was followed by a pullback Tuesday and then more gains Wednesday.
The bill, crafted by House Speaker Nancy Pelosi and her fellow Democrats, passed mostly along party lines in a 208-199 vote. But Republicans, who control the Senate, have promised it will be "dead on arrival" in their chamber.
Nearly all the job growth achieved during the 11-year recovery from the Great Recession has now been lost in one month.
Factory output is in red in the US as auto plants and steel mills shut down and companies announce layoffs and furloughs.
The Republican presidential candidate believes his plan to spur economic growth by lowering the tax would ultimately help create 25 million jobs over a decade, a claim which experts view with skepticism.
World's largest economy grows at slowest pace in two years, signalling a weakening outlook for all sectors except the housing market.
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