Tags: Coronavirus | Trump Administration | wilbur ross | economic | rebound | virus | interruptions

Wilbur Ross: US on Track for Economic Rebound Despite Virus 'Interruptions'

(AP)

Friday, 26 June 2020 12:37 PM

The U.S. economy is still on track for a strong rebound in the second half of the year, despite Texas' decision to scale back its reopening as cases of the novel coronavirus spike, U.S. Commerce Secretary Wilbur Ross said on Friday.

"It's natural there will be some little interruptions as we come back out of the pandemic, but the key thing in my view is consumer spending will continue to lead the recovery," he told Fox Business Network, citing high consumer saving rates.

"Maybe at most there will be a little slippage from Q3 to Q4, but at the end of the day the important thing is the direction is a good direction," he added. "The direction is a strong upward direction."

Ross spoke as coronavirus cases rose across the United States by at least 39,818 on Thursday. Texas, which has been at the forefront of easing restrictions, paused its reopening plans after the state recorded its one of the biggest jumps in new infections.

"States are rethinking the reopening and that's going to affect a lot of businesses," said David Yepez, lead equity analyst and portfolio manager at Exencial Wealth Advisors in Oklahoma.

"We're not going to test those March lows but there could be a correction, because we got a little bit too high."

Still, despite the spikes in cases, Ross maintained the economy will still see a strong rebound from the lockdown, which has dragged the nation into the worst downturn since the Great Depression, Fox Business explained.

In the span of two months, the unemployment rate surged from a 50-year low to an 80-year high; economists are warning of an unprecedented contraction in the second quarter.

"Remember, while those states are lagging a little bit behind what they had hoped to accomplish, there are others that are opening up more rapidly, and you're getting the cumulative effect," Ross said. 

© 2020 Thomson/Reuters. All rights reserved.


   
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The U.S. economy is still on track for a strong rebound in the second half of the year, despite Texas' decision to scale back its reopening as cases of the novel coronavirus spike, U.S. Commerce Secretary Wilbur Ross said on Friday.
wilbur ross, economic, rebound, virus, interruptions
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2020-37-26
Friday, 26 June 2020 12:37 PM
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