WASHINGTON (Reuters) – Top Trump adminstration officials on Tuesday predicted a strong economic rebound in the fourth quarter as the coronavirus fades, but a senior White House adviser warned that near-term unemployment and GDP data will be a “very grave” negative shock.
FILE PHOTO: White House Council of Economic Advisers Chairman Kevin Hassett addresses reporters during the daily briefing at the White House in Washington, U.S. February 22, 2018. REUTERS/Jonathan Ernst
Kevin Hassett, senior economic adviser to President Donald Trump told CNN that unemployment could reach 16-20%, and GDP output could fall as much as 30-40% on annualized basis in the second quarter, a prediction in line with Wall Street and Congressional Budget Office forecasts.
“I’m just saying that we’re going to have the biggest shock since the Great Depression,” Hassett told reporters at the White House. “It’s a very grave shock and something we need to take seriously.”
He added that the first quarter GDP growth number being released on Wednesday would likely b