President Donald Trump told reporters on Monday that the U.S. may be in a recession – as he predicted the coronavirus outbreak might run through the summer.
‘Well it may be,’ Trump said when asked if the U.S. was in recession, on a day when the stock market took another deep dive in morning trading amid the outbreak.
‘We’re not thinking in terms of recession. We’re thinking in terms of the virus,’ Trump said. Then he offered an up-beat longer term prediction. ‘Once we stop, I think there’s a tremendous pent-up demand both in terms of the stock market and in terms of the economy. And once this goes away, once it goes through and we’re done with it I think you’re going to see a tremendous surge,’ Trump said.
President Donald Trump said Monday that the U.S. economy ‘may be’ in a recession
Trump and his team have repeatedly talked up the stock market amid the growing crisis, and economic advisor Larry Kudlow said Monday that long term investors still might want to buy on the ‘dip.’
He spoke alongside his coronavirus task force in a White House briefing room that featured new precautions to head off spread of the disease. Reporters sat in every other seat, with networks sharing a single feed to reduce numbers inside the crowded briefing room.
Trump on Monday focused most of his remarks on the virus itself and steps the nation could take to hold it back, as his team urged nationwide efforts for American to avoid groups of larger than ten people and self-quarantine if infected.
Asked later in a White House press conference about a recession, Trump said: ‘Best thing I can do for the stock market is get through this crisis. That’s what I can do. That’s the best thing we can do. That’s what I think about. Once this virus is gone, I think you’re going to have a stock market like nobody has ever seen before.’
Trump wants a 15-day plan for people to take actions to slow down the virus, but after advisors ran models Trump is forecasting a months-long battle.
‘People are talking about July, August, something like that,’ he said.
Financial markets tumbled on Monday even after additional rate cuts by the Federal Reserve – wiping away still more of the stock market gains since President Trump took office.
The Dow was down 8 per cent Monday morning, after markets suffered steep drops that kicked in circuit breakers that halted trading.
The sudden drop when markets opened came after the Dow fell nearly 10 per cent on Thursday, the worst drop since 1987 – only to see a big rebound on Friday.
President Donald Trump on Saturday cheered stock market gains the previous day – but the Dow suffered another steep drop on Monday
President Trump cheered that brief spate of good news on Saturday. ‘Biggest stock market rise in history yesterday!’
The deep drop Monday came hours after the Fed announced it was dropping a key lending rate by 100 basis points down to essentially zero.
The S&P and the Nasdaq index were down 26 per cent from their highs in February, CNBC reported. The Dow was 30 per cent below its February high, although it was 28 per cent below its high as the day wore on.
The Senate has not yet said when it will take up a House-passed package to deal with the crisis. President Trump has touted a House-passed package.
Trump was up-beat in his Monday morning tweets. ‘Everybody is so well unified and working so hard. It is a beautiful thing to see. They love our great Country. We will end up being stronger than ever before!’
Traders work on the floor of the New York Stock Exchange shortly after the opening bell as trading is halted in New York, U.S., March 16, 2020
The Dow suffered a steep dive Monday morning at the start of trading
The broader S&P 500 also tanked at the start of trading
Workers from the White House Physician’s Office check the body temperatures of people entering the White House with a forehead temperature scanner on March 16, 2020 in Washington, DC
Trading on Wall Street was halted immediately after the opening bell Monday, as stocks posted steep losses following emergency moves by the Federal Reserve to try to avert a recession due to the coronavirus pandemic
President Trump tweeted Monday as the coronavirus outbreak continued
Trump wrote the nation would end up ‘stronger than ever before’
The news on the coronavirus front appeared to be overwhelming moves by leaders to take action on fiscal and monetary policy.
The The Centers for Disease Control has recommended people not gather in groups of 50 or more. Officials are trying to grapple with a looming shortage of Intensive Care Unit feds, and a potential lack of ventilators that would be able to provide life-sustaining help to those hit hardest by the coronavirus.
On Saturday while speaking to reporters, Trump bragged about his positive influence on the markets Friday, the bright spot amid a market correction.
‘I was honored to see that the stock market, you were mostly there with us, set a record in a short period of time, over 45-minute period that we had the press conference yesterday in the Rose Garden,’ Trump told reporters at a briefing on Saturday.
‘That was a record. All-time record. I think we should do one of them every day perhaps. How about five times a day? We’ll do one five times a day,’ Trump said.
The president’s coronavirus task force, headed by Vice President Mike Pence, postponed its planned 10:30 am briefing, which would have come amid the market tanking. It has now been moved until 3:30 pm.
With no schedule for a vote on a package with an economic response to the coronavirus, Senate Majority Leader Mitch McConnell released a weekend statement saying ‘discussions are already underway’ on key pillars.
‘The Senate is eager to work with the Administration and the House to deliver the solutions our nation deserves,’ McConnell said.
Republican Sen. Ron Johnson of Wisconsin blasted on provisions in the House-passed bill requiring businesses of fewer than 500 employees and government employers to provide two weeks of paid sick leave.
‘I hope the Senate will approach this with a level head and pass a bill that does more good than harm — or, if it won’t, pass nothing at all,’ Johnson said in a statement. ‘The president and states already have adequate authority and funding to address the current situation,’ he said.
The bill passed the Democratic-run House 363-40 and is supported by President Trump.