WASHINGTON (Pakistan Point News / Sputnik - 27th January, 2021) Treasury Secretary Janet Yellen said she was working toward addressing a K-shaped recovery of the US economy expected to take place after the coronavirus pandemic.
"People worry about a K-shaped recovery to the pandemic -and that is a cause for concern - but long before COVID-19 infected a single individual, we were living in a K-shaped economy, one where wealth built on wealth while certain segments of the population fell further and further behind," Yellen said in her first message to staff at the Treasury Department on Tuesday. "I believe our Department can play a major role in addressing each of these crises."
A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times or magnitudes. This is in contrast to an even, uniform recovery across sectors, industries or groups of people.
The US economy shrank 5 percent in the first quarter of last year and 31.4 percent in the subsequent three months, as businesses shut down during the height of the pandemic and struggled to stay open later. Third quarter GDP rebounded 33.1 percent, with fourth-quarter data not published yet.