President Trump said Monday he anticipates a V-shaped economic recovery from the coronavirus pandemic, citing a stock market rally spurred by promising vaccine news.
“The market is up very big. And I think you’re going to have a ‘V’ — I think it’s going to be terrific,” Trump told reporters Monday at the White House.
The Dow shot up nearly 1,000 points Monday after biotech firm Moderna reported promising results from a small human trial of its COVID-19 vaccine.
“You’re seeing it maybe today for the first time, where not only are the markets up tremendously, but we’ve had tremendously good and positive information on therapeutics, on cures and on vaccines from some of the most respected companies in the world and researchers and doctors and labs,” Trump said.
The president added: “I think you’re very close to having a very, very positive situation.”
“This is a very big day,” he said. “This feels much different than Friday. Friday is a different feeling than today. This is a very positive day.”
Stocks also were boosted by Federal Reserve Chairman Jerome Powell vowing continued interventions to prop up the economy, saying the Fed was “not out of ammunition by a long shot.”
Powell said on CBS’ “60 Minutes” that the US economy would rebound later this year, but may not return to a pre-COVID-19 rate of growth until late 2021.
On Monday, Trump asserted that the third quarter of 2020 will be a transition period for the economy as states allow businesses to reopen.
Since March, crisis-drive closures left 36 million people unemployed, or 22 percent of the pre-pandemic workforce. The virus has infected about 1.5 million US residents and killed roughly 90,000.
But Trump pointed to the stock market rebound as cause for optimism.
“The stock market is not very short of where it was with all that we went through,” Trump said. “And that means a lot of smart people are looking into saying, ‘We are coming back.’ And we’re coming back to that level. I think we’re going to come back to greater than that level. And we’ve learned a lot. One of the things we’ve learned is be reliant on ourselves. Don’t be reliant on other countries that frankly maybe have different agendas. And frankly, there are plenty of them out there.”
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