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

Earlier this week, the central bank official forecast that the unemployment rate will skyrocket to 30%, higher than it was even during the Great Depression. However, he tempered those remarks in Wednesday’s interview on “Squawk Box,” saying that while the near-term damage 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.”

Once the short-term hit passes, Bullard said, the U.S. economy …continued .
[Source: CNBC News]