White House Adviser Hassett: May Unemployment Could Climb to 20%

White House economic advisers say fourth stimulus package would be 'premature'

White House economic advisers say fourth stimulus package would be 'premature'

"Nobody knows for sure if it's going to work", he said.

Speaking to Wallace on April 26, Mnuchin said he expected the economy to bounce back by the summer. So, it's not that we're not talking.

The US jobless rate may peak "north of" 20 per cent in May or June before the economy starts to recover from coronavirus-related shutdowns in the second half of 2020, a top White House adviser said.

Mr Hassett, the former chairman of the Council of Economic Advisers, recently returned to the White House to advise on virus-related matters.

"I think that it's just premature, given that the $9 trillion of aid that passed in the last three phases, given that that is still out there and there's still a bunch of it that's going to be delivered over the next month, we think we have the luxury of a moment to learn about what's going on so the next step we take can be prudent", Hassett told CNN on Sunday. "Here we understand why the economy is slowing down, and we expect that we can reverse it, whereas in the Depression there were a lot of other things, a lot of policy errors and so on that made the whole thing drag out".

Kudlow added however that he and Hassett have been discussing a fourth package with lawmakers, taking part in a conference call with a bipartisan group of 50 House representatives on Friday with a similar call with senators scheduled for Monday.

Interpol issues red notice for diplomat's wife Anne Sacoolas over United Kingdom death
While admitting to driving on the other side of the road, Sacoolas claimed diplomatic immunity after the crash outside the U.S. Air Force listening station at RAF Croughton and returned to the U.S. on September 15, sparking an global outcry.

"Of course if we go to a phase four deal, I think President Trump has signaled that while he doesn't want to bail out the states, he's willing to help cover some of the unexpected [COVID-19] expenses that might have come their way", Hassett said.

Democrats, who control the House, are pushing for a vote as soon as this week on another massive relief bill that would include more money for state and local governments, coronavirus testing and the US Postal Service.

"We're collecting ideas for next steps, which will be data driven", Mr Kudlow said.

White House predictions about how the U.S. economy might rebound from the coronavirus crisis and how quickly a vaccine might be rolled out came under question on Sunday.

The White House is "absolutely" pushing for a payroll tax cut, Mnuchin said. The proposal has little congressional support. There is now no coronavirus vaccine.

Neal Kashkari, president and chief executive of the Federal Reserve Bank of Minneapolis, told ABC's This Week he would welcome a robust economic recovery. "I don't know when we're going to have that confidence". On the other hand, economists say the true unemployment numbers are even more distressing since the labor department figures don't include the millions of workers that have stopped searching for jobs or those considered "underemployed".

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.