Fed’s James Bullard says after a short-term ‘unparalleled’ shock, economy will boom again

The U.S. economy is facing a huge shock to the system over the near term then will bounce back strong after, St. Louis Federal Reserve President James Bullard said Wednesday.

Bullard spoke to CNBC in an interview on “Squawk Box.”

The central bank official was in the news earlier this week when he forecast that the unemployment rate will skyrocket to 30%, higher than it was even during the Great Depression.

However, he tempered those remarks in his CNBC interview, saying that while the near-term hit will be daunting, it’s largely an intentional hit due to efforts to combat the coronavirus and will be unwound quickly.

“This number will be unparalleled, but don’t get discouraged,” Bullard said. “This is a special quarter, and once the virus goes away and if we play our cards right and keep everything intact, then everyone will go back to work and everything will be fine.”

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