The former chairman of the White House Council of Economic Advisers on Monday predicted a global recession — and a loss of 1 million jobs in April.
“I think that the odds of a global recession are close to 100 percent right now,” Kevin Hassett said on CNN. “I think in the U.S., we’re going to have a very terrible second quarter. At The Lindsey Group, we just ran the numbers carefully over the weekend, and we think the second quarter will be about minus 5 percent.
Hassett said “millions and millions of people” are typically hired and fired each month, but because hires will remain close to zero and the number of firings will be constant, “you’re looking at one of the biggest negative jobs numbers that we’ve ever seen.”
“We think the jobs number in early April might be as much as minus a million or so because nobody is going to be hired next week,” Hassett said.
The spread of coronavirus across the world has rocked the global economy. As governments worldwide issued stricter containment measures, closing schools, bars and restaurants, central banks moved to intervene in the markets.
The Federal Reserve on Sunday moved to soothe the markets — slashing interest rates to essentially zero and launching a $700 billion quantitative easing program to protect the U.S. economy from the effects of the virus.