America's unemployment rate may hit 23%, Trump adviser says

Article Image

Kevin Hassett, senior economic adviser to President Trump, tells CNN's Poppy Harlow that China's proposed national security law will be "very costly to China and the people of Hong Kong."

Posted: May 23, 2020 10:41 AM
Updated: May 23, 2020 10:41 AM

The worst could be over for the United States economy in about a month, according to a top adviser to President Trump. But the worst is going to be ugly.

Kevin Hassett, a senior White House economic adviser, told CNN's Poppy Harlow Friday morning that he thinks the unemployment rate, which hit 14.7% in April, may rise to 22% to 23% by May and edge up a bit in June before heading lower.

"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.

Stocks have surged since mid-March on hopes of a rapid rebound for the economy. But many experts are skeptical that a so-called V-shaped recovery will materialize.

Earnings estimates for Corporate America continue to plunge, and it's unclear how much profits will bounce back in 2021.

Renewed worries about US-China trade tensions and strict new security laws in Hong Kong also may the market and economy too. The Senate wants to crack down on publicly traded Chinese companies listed in the United States that don't agree to open their books for accounting reviews.

"China is getting close scrutiny and we are considering all options," Hassett said. "We are not going to give China a pass."

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 122168

Reported Deaths: 4444
CountyConfirmedDeaths
Los Angeles596922532
Riverside8303345
San Diego7798283
Orange6783165
San Bernardino5650209
Alameda364197
Santa Clara2850144
San Francisco264443
Imperial249330
Kern246245
San Mateo224484
Tulare208392
Fresno194437
Santa Barbara171414
Contra Costa154738
Sacramento149058
Ventura119035
Kings11876
San Joaquin102436
Stanislaus79230
Monterey62110
Sonoma5934
Solano55922
Marin52517
Merced3107
San Luis Obispo2881
Placer2599
Santa Cruz2192
Yolo21624
Madera1293
Napa1263
Humboldt1044
El Dorado980
San Benito962
Butte601
Nevada491
Sutter482
Del Norte470
Shasta404
Mono371
Mendocino330
Yuba311
Lake300
Inyo201
Glenn170
Calaveras160
Mariposa161
Amador100
Siskiyou90
Colusa70
Tehama61
Tuolumne50
Lassen50
Plumas40
Alpine20
Sierra10
Trinity10
Unassigned00
Chico
Few Clouds
70° wxIcon
Hi: 90° Lo: 59°
Feels Like: 70°
Oroville
Clear
70° wxIcon
Hi: 90° Lo: 59°
Feels Like: 70°
Paradise
Few Clouds
70° wxIcon
Hi: 83° Lo: 55°
Feels Like: 70°
Chester
Clear
62° wxIcon
Hi: 78° Lo: 50°
Feels Like: 62°
Red Bluff
Clear
72° wxIcon
Hi: 90° Lo: 60°
Feels Like: 72°
Willows
Few Clouds
70° wxIcon
Hi: 94° Lo: 57°
Feels Like: 70°
Today will be nice but much cooler weather this weekend with a chance of showers and thunderstorms, mostly in the north valley and mountains. We heat up again next week.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events