“June will be higher,” Hassett said. “That will be the turning point.”
He predicted that Congress and President Trump will agree on a so-called “fourth wave” of economic stimulus “sooner rather than later.”
That would add to the trillions of dollars already set aside by lawmakers as well as the Federal Reserve in order to assist consumers, businesses and local governments struggling due to the Covid-19 pandemic.
Hassett added that now he believes many unemployed and furloughed workers might return to the labor force more quickly than he previously expected. He credited the quick response from politicians and the Fed.
“This was the biggest negative shock ever, but we also had the biggest policy response ever,” Hassett told Harlow.
“China is getting close scrutiny and we are considering all options,” Hassett said. “We are not going to give China a pass.”