US Economy In 'Biggest Negative Shock', Unemployment Might Go Up To 16%, Trump Adviser Says

White House economic advisor says that amid the Covid-19 outburst, the U.S. economy is facing historic shock and may require more stimulus, President Donald Trump’s adviser Kevin Hassett said.

What Happened

“This is the biggest negative shock that our economy, I think, has ever seen. We’re going to be looking at an unemployment rate that approaches rates that we saw during the Great Depression,” Hassett said at the ABC's “This Week.”

The nonpartisan Congressional Budget Office estimates the unemployment rate at 16% for the third quarter and averaging above 10% for 2021, Reuters reported. The U.S. GDP is seen narrowing down a 40% annual rate in the second quarter.

The unemployment report is due on May 8. Almost 26.5 million Americans have filed for jobless benefits since mid-March.

Among other economic indicators, March housing starts recorded a drop of 22.3% steepest since March 1984, while U.S. retail sales were down 8.7%, worst since 1992. Consumer confidence reading came in at 120, the lowest in three years.

President Donald Trump’s adviser, Kevin Hassett, believes that the economy needs more stimulus to bounce back in the positive.
He further added, “We’re going to need really big thoughtful policies to put together to make it so that people are optimistic again.”