President Trump on Thursday predicted a “big bounce” as he argued the U.S. economy will recover quickly from the huge hit it’s taken due to the coronavirus pandemic — despite 16.8 million Americans losing their jobs in only the last three weeks.
As he teased possible deals to assist out the ailing airline industry and help oil prices recover, Trump said he was confident that the flagging U.S. economy would come from the drubbing taken since it had been effectively pack up from the present pandemic.
“The economy is simply getting to do alright ,” Trump said at the daily coronavirus taskforce briefing at the White House. “I think we’re getting to have an enormous bounce…we’re getting to open up very strong.”
Trump’s bravado was juxtaposed by the staggering jobs numbers from the week during which 6.6 million more Americans filed for unemployment benefits. Those number now mean that one in every 10 working Americans have lost their job within the last three weeks.
The figures collectively constitute the most important and fastest string of job losses in records dating to 1948. against this , during the good Recession it took 44 weeks — roughly 10 months — for unemployment claims to travel as high as they now have in but a month.
The job market is quickly unraveling as businesses have pack up across the country. All told, within the past three weeks, 16.8 million Americans have filed for unemployment aid. The surge of jobless claims has overwhelmed state unemployment offices round the country. And still more job cuts are expected.
More than 20 million people may lose jobs this month. The percentage could hit 15 percent when the April employment report is released in early May.
The viral outbreak is believed to possess erased nearly one-third of the U.S. economy’s output within the current quarter. Forty-eight states have closed non-essential businesses.
The president’s optimistic outlook on economic recovery isn’t shared by a number of the world’s top economists who say there are emerging signs that any recovery will fail to match the speed and severity of the economic collapse that occurred in only a couple of weeks. The 2020 presidential and Senate elections likely will happen because the world’s largest economy remains attempting to climb back from the deadly outbreak.
“Anyone who assumes we’re getting to get a pointy snapback in activity isn’t brooding about how consumers are getting to feel. They’re getting to be very cautious,” said Nariman Behravesh, chief economist at IHS Markit. “Households and businesses have seen their finances deteriorate. People are window shopping on their credit cards.”
If there’s one brought spot, it’s that Wall Street closed out its best week in 45 years on Thursday after the Federal Reserve System launched its latest titanic effort to support the economy through the coronavirus outbreak.
The financial institution announced programs to supply up to $2.3 trillion in loans to households, local governments and businesses because the country tips into what economists say could also be the worst recession in decades. It’s the newest unprecedented move by the Fed, which has rushed to make sure cash gets to parts of the economy that require it after markets got snarled by a rush of investors pulling live of the system.
The stock exchange , however, isn’t the economy and therefore the jobless numbers on Thursday made that abundantly clear. Still, investors are continuously looking ahead to where the economy are going to be a couple of months or more within the future in within the previous couple of weeks, they need sent the market copy nearly 25 percent following promises for enormous aid from the Fed, other central banks and governments round the world, whilst evidence piles up that the recession fears were prescient.
This week, some investors have begun to seem ahead to the economy possibly reopening amid signs the outbreak could also be peaking or plateauing in several of the world’s hardest-hit areas.
”The market is solely focused on the amount of cases,” said Quincy Krosby, chief strategist at Prudential Financial. “The question is when can the restrictions be lifted? That’s what the market is concentrated on, when does America open up for business again?”
Along with the economy, Trump also announced that he and Secretary of Transportation Elaine Chao are performing on an idea to assist airlines keep their employees and save their businesses.” He said that discussions with airlines should begin this weekend.
Airline travel has sunk to rock bottom level in decades since the outbreak of the pandemic with the Transportation Security Administration screening only 94,931 people on Wednesday, a drop of 96 percent from a year ago and therefore the second straight day under 100,000.
Source: Fox News