<p>Federal Reserve Bank of St. Louis President James Bullard prepared the public Sunday for the truly dire economic impact of the state-imposed mass shutdowns of entire industries in response to the COVID-19 pandemic. During a phone interview with the press, Bullard predicted a jaw-dropping rise in unemployment and an even more devastating decline in gross domestic product (GDP) over the course of quarter 2; however, he also sees a financial light at the end of the tunnel, predicting potential &#8220;boom quarters&#8221; in the fourth quarter of this year and the first of next year.</p>
<p>According to Bullard, the U.S. unemployment rate could reach as high as 30% in the second quarter as a result of the coronavirus shutdowns, while GDP could drop as much as 50%, <a href="https://www.msn.com/en-us/finance/markets/us-jobless-rate-may-soar-to-30-25-fed-e2-80-99s-bullard-says/ar-BB11y3ER">Bloomberg</a> reported Sunday.</p>
<p>“This is a planned, organized partial shutdown of the U.S. economy in the second quarter,” Bullard said during the phone interview Sunday. &#8220;The overall goal is to keep everyone, households and businesses, whole,&#8221; he explained. &#8220;It is a huge shock and we are trying to cope with it and keep it under control.&#8221;</p>
<p>The Fed has already taken some aggressive action. Bloomberg notes that last week the Fed &#8220;restarted financial crisis-era programs to help the commercial paper and money markets, after cutting interest rates to near zero and pledging to boost its holdings of Treasuries by at least $500 billion and of mortgage securities by at least $200 billion.&#8221;</p>
<p>But Bullard said the Fed is prepared to do more. The $2.5 trillion in lost income, Bullard said, requires an even stronger and more comprehensive fiscal response — a response, he suggested, that must be open to a wide range of measures and would depend upon &#8220;where Congress wants to go&#8221; in its emergency actions.</p>
<p>Buying corporate debt was one option that Bullard said the Fed could &#8220;certainly look at,&#8221; noting that the Fed is &#8220;already supporting very short term funding markets.&#8221;</p>
<p>In order to provide loans to small businesses — one of the priorities of the emergency economic relief package blocked by Democrats in the Senate Sunday — it would be better to turn to existing small business lending programs rather than taking the time to create a new program, Bullard said.</p>
<p>Though Bullard offered a sobering assessment of the nation&#8217;s economic situation in light of the shutdowns, he also offered some hope.</p>
<p>&#8220;I would see the third quarter as a transitional quarter,&#8221; Bullard said, as reported by Bloomberg. The fourth quarter and the first of next year, he suggested, were likely to be &#8220;quite robust.&#8221;</p>
<p>&#8220;Those quarters might be boom quarters,&#8221; said Bullard.</p>
<p>Bullard&#8217;s grim projections highlight the urgency for Congress to pass the emergency relief package blocked Senate Democrats thwarted, reportedly at the behest of House Speaker Nancy Pelosi (D-CA). In place of the bipartisan bill, House Democrats presented their own stimulus package Monday that contains a series of non-crisis-related Democratic &#8220;wishlist&#8221; items, including, as <a href="https://www.dailywire.com/news/senator-highlights-pelosis-absurd-coronavirus-bill-that-is-unrelated-to-the-crisis">detailed</a> by Republican Sen. Tom Cotton:</p>
<ol>
<li>Corporate pay statistics by race and race statistics for all corporate boards at companies receiving assistance.</li>
<li>Bailing out all current debt of postal service</li>
<li>Required early voting</li>
<li>Required same day voter registration</li>
<li>10k bailout for student loans</li>
<li>For companies accepting assistance, 1/3 of board members must be chosen by workers</li>
<li>Provisions on official time for union collective bargaining</li>
<li>Full offset of airline emissions by 2025</li>
<li>Greenhouse gas statistics for individual flights</li>
<li>Retirement plans for community newspaper employees</li>
<li>$15 minimum wage at companies receiving assistance</li>
<li>Permanent paid leave at companies receiving assistance</li>
</ol>
<p><strong>Related: <a href="https://www.dailywire.com/news/breaking-ag-barr-announces-crackdown-on-hoarding-price-gouging-critical-medical-supplies">AG Barr Announces Crackdown On Hoarding, Price Gouging Critical Medical Supplies</a></strong></p>

<script async src="https://www.instagram.com/embed.js"></script>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<script async src="https://www.tiktok.com/embed.js"></script><div data-widget-host="revcontent" data-pub-id="165152" data-widget-id="290588"></div><script src="https://delivery.revcontent.com/165152/290588/widget.js"></script>

The Fed’s Bullard Gives Predictions On When Economy Will Recover From Coronavirus Shutdowns

CONTINUE READING

One Of Most Sacred Sites For Jews & Christians To Be Fully Opened To Public: ‘Miracle’ Pool Of Siloam

Tuesday | October 5th, 2021

Monday | October 4th, 2021

Friday | October 1st, 2021

Monday | September 27th, 2021

Saturday | September 25th, 2021

News and Commentary

COVID

Economy

Nancy Pelosi

A video goes viral showing a baby being refused his mother by two gay "dads". This is just the tip of the iceberg, which is why we will have an important discussion today about surrogacy. 

Hour 1

The Matt Walsh Show

Ep. 1765 - This Video Is One Of The Worst Things I've Seen In A Long Time 

The Strait of Hormuz officially opens for business (kind of), the Pope makes “shocking” comments on immigration, and President Trump promises UFO disclosure at TPUSA. 


The Michael Knowles Show

Ep. 1956 -  Pope Leo's "SHOCKING" Immigration Comments EXPLAINED

A false miscreed has corrupted our leadership class.


The Andrew Klavan Show

Ep. 1275 - Dumb, Dumber and Progressive

President Trump announces a 10-day ceasefire between Lebanon and Israel, a murder-suicide involving former Democratic Lieutenant Governor Justin Fairfax shakes Virginia, and France and Britain hold a conference to secure the Strait of Hormuz – after the Iranian conflict ends. Get the facts first with Morning Wire.

- - -

Ep. 2738

- - -

Wake up with new Morning Wire merch: https://bit.ly/4lIubt3

- - -

Today's Sponsors:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text 'WIRE' to 83848 to learn more.

Pocket Hose - Text MORNING to 64000 to get a FREE pocket pivot and their 10-pattern sprayer with the purchase of ANY size Copper Head hose. Message and data rates may apply.

Morning Wire

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26

U.S. Expands Hormuz Blockade & VA Fairfax Deaths Investigated | 4.17.26 [Member Exclusive]

A ceasefire goes into effect between Israel and Lebanon, a tragic murder-suicide rocks Virginia, and Dairy Queen deploys AI in the drive-thru. Get the facts first with Evening Wire.
- - -
Ep. 2737
- - -
Wake up with new Morning Wire merch: https://bit.ly/4lIubt3 
- - -
Today’s Sponsor:

Alliance Defending Freedom - Visit https://JoinADF.com/WIRE or text “WIRE” to 83848 to learn more.


Evening Wire: Lebanon Ceasefire Begins & Murder-Suicide Rocks VA | 4.16.26

The Pendragon Cycle

Menu

— News and Commentary —

The Fed’s Bullard Gives Predictions On When Economy Will Recover From Coronavirus Shutdowns