WASHINGTON (Reuters) – The shuttering of the U.S. economy due to the coronavirus pandemic is a shock of historical proportions that likely will press the national unemployment rate to 16%or higher this month and need more stimulus to ensure a strong rebound, a White House financial consultant said on Sunday.
FILE IMAGE: Council of Economic Advisers Chairman Kevin Hassett speaks with press reporters at the White House in Washington, U.S., April 11,2019 REUTERS/Kevin Lamarque/File Image
” It’s an actually serious situation,” President Donald Trump’s advisor Kevin Hassett informed the ABC program “Today.”
” This is the most significant negative shock that our economy, I think, has actually ever seen. We’re going to be taking a look at an unemployment rate that approaches rates that we saw throughout the Great Depression” of the 1930 s, Hassett added.
Lockdowns around the United States to reduce the spread of the novel coronavirus have hammered the economy, shuttering services and sending joblessness increasing.
A record 26.5 million Americans have actually applied for jobless advantages since mid-March, and retail sales, homebuilding and customer self-confidence have actually all cratered.
The nonpartisan Congressional Spending plan Workplace anticipates U.S. GDP will contract at nearly a 40%yearly rate in the 2nd quarter, with joblessness cresting at 16%in the 3rd quarter. However even next year, the CBO s