Economist Stephen Roach says the US economy’s V-shaped recovery is ‘in tatters’ and the dollar could crash 20% this year

SourceBusiness Insider
SectorFinancial Markets
CountryMiddle east

Yale economist Stephen Roach was pessimistic about the US economy in an interview with CNBC Mark Lennihan/AP The US economy's V-shaped recovery is "in tatters",  due to rising coronavirus cases and new restrictions, according to Yale economist and former Morgan Stanley Asia chair Stephen Roach. Roach said the dollar could drop around 20% this year, thanks to the growing US budget deficit and next-to-zero interest rates at the Federal Reserve. The former bank chair said the stock markets 'do not seem to care' about anything other than stimulus from the Fed. Visit Business Insider's homepage for more stories. The US economy's recovery is in "tatters" after the latest rise in coronavirus cases and new restrictions, while the dollar could fall another 20% amid low interest rates and a yawning budget deficit, according to Yale economist and former bank chairman Stephen Roach. "The economy is slipping right before our very eyes," Roach said in an interview on CNBC's "Trading Nation" on Monday, yet "the markets do not seem to care." Roach pointed to recent economic data such as falling retail sales in November, a drop in consumer confidence and rising unemployment in December. The former chair of Morgan Stanley Asia said a "double-dip" recession is now likely. Explaining the more...