Ex-Trump advisor Gary Cohn warns the US will have ‘massive unemployment very, very quickly’
The U.S. unemployment rate will rise swiftly and dramatically as the coronavirus brings the American economy to a stop, former top White House economic advisor Gary Cohn told CNBC. “I believe that we are going to have massive unemployment very, very quickly,” Cohn said on “Squawk Box.”
Cohn’s comments came shortly after the Labor Department said jobless claims rose to 281,000 last week, an increase of 70,000 from the week prior.
The former Goldman Sachs president is not alone in forecasting a continued jump in unemployment. Pantheon Macroeconomics’ Ian Shepherdson earlier told CNBC he thought next Thursday’s jobless claims could soar to around two million.
Bank of America says the recession is already here: ‘Jobs will be lost, wealth will be destroyed’
Bank of America warned investors that a coronavirus-induced recession is no longer avoidable — it’s already here.
“We are officially declaring that the economy has fallen into a recession … joining the rest of the world, and it is a deep plunge,” Bank of America U.S. economist Michelle Meyer wrote in a note. “Jobs will be lost, wealth will be destroyed and confidence depressed.”
The firm expects the economy to “collapse” in the second quarter, shrinking by 12%. GDP for the full year will contract by 0.8%, it said.
Toyota extends shutdown of North American plants
Toyota said it will extend a planned two-day shutdown of all North American plants until April. On Wednesday, the automaker said it planned to close facilities on March 23 and 24. The automaker will now reopen keep plants shuttered until April 6. Toyota has approximately 32,000 manufacturing employees in North America, including 23,000 in the U.S., a company spokesperson said.
Israelis ordered to stay at home
Israeli Prime Minister Benjamin Netanyahu said the government will issue orders on Thursday forcing Israelis to stay at home to halt the spread of the coronavirus crisis.
“Under these orders, you, Israel’s citizens, are required to stay at home. It is no longer a request, it is not a recommendation, it is an obligatory directive that will be enforced by enforcement authorities,” Netanyahu said, adding that the orders will go into effect later in the day, for a week.
Certain workers would be exempt from the measures, Netanyahu said in the televised address, and Israelis would still be allowed to shop for food and medicine.
CNBC