Economic outlook ‘really grave’ as the United States looks to open up: Kevin Hassett, the White House economic advisor

Kevin Hassett, the White House economic advisor (file photo by AFP)

The outlook for the US economy is a "really grave situation" and unemployment could reach levels not seen since the Great Depression, the White House economic advisor has warned.

“Make no mistake, this is a really grave situation George,” Kevin Hassett said on ABC’s “This Week” when asked by George Stephanopoulos whether he thought the economic recovery would be “V-shaped.”

Hassett said the economic outlook depended on “what happens next,” hoping that the country will pull together to create a plan for a V-shaped recovery.

    “We're going to be looking at an unemployment rate that approaches rates that I think we saw during the Great Depression,” he added.

The US economy has been hit hard by the coronavirus lockdowns, with a record number of Americans applying for unemployment benefits.

A total of 26 million Americans have lost their jobs in just five weeks, according to data by the Department of Labor.

“This is the biggest economic shock our economy I think has ever seen,”Hassett said.

The White House advisor further cautioned that Congress needs to adopt “another round of really solid legislation” to lay the groundwork for the recovery.

He also expressed concern about the “climbing” national debt as the federal government is borrowing money to deal with the pandemic.

“So for sure, we need to do still some short run things,” he said. “But I think looking at long-run changes that we can make to things to improve the debt situation – you know, that should be something that is on the table.”

Treasury Secretary Steven Mnuchin, meanwhile, predicted on Sunday that America would rebound this summer and in the early fall.

“We are putting an unprecedented amount of fiscal relief into the economy," Mnuchin said “Fox News Sunday.” "You’re seeing trillions of dollars that’s making its way into the economy and I think this is going to have a significant impact.”

Other experts, however, have painted a much gloomier picture.
President Donald Trump is facing growing criticism for the way he has handled the outbreak.

He squandered crucial time in February and early March downplaying the threat while the virus was silently spreading in the country.

The US has become the number-one coronavirus hot spot in the world, with nearly one million cases of infection and over 54 thousand deaths.