The Coronavirus (COVID-19) effects on Global Economy
The virus which was first known and spread widely in a city called Wuhan China , has infected over thousands of people world wide. And it spread has left businesses around the world into a pit of uncertainty and continuous counting cost.
The U.S interest rates have recently fallen to historic lows in as sign of increasing economic uncertainty.
The 10-year Treasury yield fell from 1.69 percent to 1.50 percent in the last week of January after remaining steadily around 1.7 percent to 1.8 percent throughout 2019 and early 2020. The decline continued through February, and for the first time in 150 years, the yield rate dipped below 1 percent on March 3.
The abnormal decline has increased calls for action from Wall Street, demanding that the White House and Congress to do something. But as the Covid-19 continuous to spread across the state and now there is a State of Emergency by the President of the State, things are beginning to unravel as to when we going to get a vaccine or put an end to this virus. The 10-year yield rate—often looked to as a fear index of the economy—clearly reflects the uncertainty and instability caused by the coronavirus and lack of appropriate response.
But those who depends on pay check to pay check are the ones to suffer most since they are not allowed to go out and work, is now a night nightmare for a lot of people across the State.