Need to Know: Morgan Stanley says U.S. growth will contract by 30% next quarter but here’s why we won’t see a Great Depression repeat

Need to Know: Morgan Stanley says U.S. growth will contract by 30% next quarter but here’s why we won’t see a Great Depression repeat

Morgan Stanley says U.S. growth will contract by 30% next quarter but 's why we won't see a Great Depression repeat. Coronavirus cases keep rising, countries around the world are strengthening measures designed to keep people indoors - slowing the economy in the process-- and the U.S. is struggling to pass its $1 trillion-plus economic aid bill.. The combination led U.S. stock futures to hit "limit down" shortly after the open late on Sunday.. GDP growth would plunge 30% in the second quarter, hitting a 74-year low.. The forecast is worse than that of Goldman Sachs, which predicted a 24% drop , but more optimistic than Federal Reserve Bank of St. Louis President James Bullard's 50% drop forecast.. A later peak and disruption into Q3 would see U.S.. GDP fall 8.8% in 2020, bringing it down to levels last seen in the early 1930s.. The Federal Reserve also maintained a hawkish monetary policy stance for an extended period.". Europe has dominated the picture but cases in North America have surged in recent days.. fell 913 points on Friday to end another damaging week, U.S. stock futures plunged before the open on Monday as the global coronavirus death toll continued