There’s a huge problem with the recovery in the U.S. as the latest ADP numbers show. We will likely have high unemployment for the rest of the year.
First-time jobless claims have increased for two straight weeks after a 15-week stretch of declines as coronavirus surges in the South and West led more than 20 states to suspend or roll back the reopening of restaurants, bars, gyms, movie theaters and other outlets.
Without a strong Federal government fiscal response, the economy will get much worse than it is today. An example of this is how the Federal Reserve has made interest rates so very low so that everyone can borrow money for practically free, but businesses are not borrowing money because the demand for their products and services has completely dried up. This is why the Fed has been pushing Congress for months to come out with more stimulus measures which they have failed to do so.
Bruce Kasman, chief economist and head of global economic research at JPMorgan, discusses U.S. economic growth and his unemployment outlook for the remainder of the year. He speaks on “Bloomberg Surveillance.”