Lockdown Sees US Job Cuts in April Highest Single Month Ever

Helmholtz Watson

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis is out warning about how bad unemployment is

Kashkari shared on NBC’s Today Show in an interview ahead of Friday’s monthly employment report, which he says won’t give the clearest picture of job losses amid the coronavirus pandemic.

“That bad report tomorrow is actually going to understate how bad the damage has been,” Kashkari explained, adding that the reported unemployment rate could be as high as 17% — a brutal number, no doubt — but he says the true number may be as high as 24%. “It’s devastating.”

“The Federal Reserve is acting aggressively, we will continue to act aggressively,” he said. The central bank’s balance sheet has ballooned to a record $6.7 trillion as it rolls out an unprecedented amount of stimulus to help limit the harm of business closures and seized up economic activity on financial markets.

“When are we all going to feel safe to go sit in a crowded movie theater with a couple hundred other strangers around us?” he asked. “Unfortunately, the recovery looks like it is going to be slow.”