05.26.20 - As many areas within the country have started a process of easing the lockdown, many estimate that the worst could soon be behind us in a matter of a month. A senior White House advisor, however, recently told CNN’s Poppy Harlow that things could ugly before we see that improvement. Kevin Hassett, the senior White House economic adviser in question, thinks the unemployment rate may rise to 23% by June before decreasing.
"June will be higher," Hassett said. "That will be the turning point."
Hassett stated that he sees Congress and the White House agreeing on another wave of economic stimulus as we slowly transition into reopening. This would be an additional trillions of dollars set aside to assist businesses and local governments struggling with the impact of the pandemic. Hassett also added that he believes many unemployed and furloughed workers might return to the labor force sooner than he previously expected and gave credit to the rapid response from Washington and the Fed.
"This was the biggest negative shock ever, but we also had the biggest policy response ever," Hassett told Harlow.
Stocks have surged on beliefs that there may be a rapid rebound for the economy. Many analysts are cautious that such a recovery will materialize, however. As data from the latest quarter is expected to come in soon, it is unclear how the economic situation will continue to evolve.