Trump advisers predict swift US economy turnaround
WHITE HOUSE’S ROSY VIEW OF US ECONOMY CLASHES WITH ECONOMISTS
White House officials are increasingly predicting a swift economic recovery as they break off talks with Congress on additional federal stimulus, expressing optimism that the “reopening” of states will reverse the economic damage caused by the coronavirus.
President Donald Trump and his senior advisers, encouraged by the relative strength of the stock market and some indicators like credit card receipts, have in recent days expressed confidence the US economy will roar back to life in the second half of this year despite staggering increases in unemployment and small business closures.
“It almost feels like today is the first day,” Trump said during a White House meeting. “People are starting to go out. They’re opening. They get it.”
The White House’s rosy view of the US economy’s trajectory clashes with the dire predictions of many mainstream economists, as well as Federal Reserve Chair Jerome Powell, who was set to testify before the Senate Banking Committee yesterday alongside Treasury Secretary Steven Mnuchin.
Powell said last week that lawmakers should strongly consider passing additional stimulus
measures to avoid a severe and prolonged economic downturn. The unemployment rate rocketed from 3.5 per cent in February to 14.7 per cent in April, and it is projected to continue climbing.
Monitoring reopenings
White House economic officials believe some of these trends can be quickly reversed.
They are monitoring the reopening of states such as Georgia and Texas with cautious optimism that they could presage a broader recovery, according to two people in communication with them.
White House economist Kevin Hassett cited what he called positive economic trends in retail, business re-openings, and credit card transaction data over the last two weeks.