Stephen Moore on economy: ‘It’s going to be a bad summer’

Economist Stephen Moore predicted Sunday that the summer will not provide any relief for the U.S.’s beleaguered economy.

“It’s going to be a really tough time for retail…stores like Macy’s.. are going to face a tough time…because a lot of them were in trouble already,” Moore told radio host John Catsimatidis on Sunday.

“But also people are just going to be a little more wary about going into stores…It’s going to be a bad summer.”

Moore, an ally of President Trump who is on the White House coronavirus economic task force, said that many states could experience unemployment rates between 15 and 20 percent, adding that he doesn’t think the U.S. will see the light at the end of the tunnel until mid-to-late August.

“In the fall we’ll start to see a nice recovery,” Moore noted.

Moore’s comments come as major retailer Macy’s plans to open 68 stores after it shuttered its businesses in mid-March. According to data from the Commerce Department, retail sales dropped 9 percent in March, the largest drop on record according to the government office. 

Retailers that open face a double challenge: providing their customers with proper personal protective gear, and trying to convince shoppers to make purchases in-person.

In the past six weeks, over 30 million Americans have filed for unemployment and that number is only expected to rise in the coming weeks. Before the onset of the pandemic, the U.S.’s unemployment rate was roughly 3.5 percent. Economists have estimated that the number is now hovering around 20 percent.

The economic fallout from the pandemic was also reflected in the U.S.’s GDP, which fell 4.8 percent in the first quarter, the largest contraction since the financial crisis.

Through four economic stimulus packages, Congress and the president have injected upwards of $3 trillion into the country’s economy.

John Catsimatidis is an investor in The Hill.