The U.S. economy will start to recover in the third quarter after a period of reopening in May and June, Treasury Secretary Steven Mnuchin said Sunday.
“As we begin to reopen the economy in May and June, you’re going to see the economy really bounce back in July, August and September,” Mnuchin said in an interview on Fox News Sunday.
The trillions of dollars in government spending “will have a significant impact” to spur growth, he said. “As businesses begin to open, you’re going to see the demand side of the economy rebound.”
Mnuchin noted his forecast is based on assumptions about how the pandemic proceeds. Reopening will have to be balanced with increased testing, he said.
Many experts don’t think there will be a quick recovery, often referred to as a V-shaped rebound.
Billionaire Barry Diller, the chairman of Expedia Group, EXPE, +5.05% scoffed at suggestions the economy would recover this summer.
“Anyone who thinks this economy is going to bounce…it can’t. The damage that is being done is catastrophic,” Diller said on CBC News’ “Face the Nation.”
He said early September would be a better guess of when employees start to return to work.
Bank of America CEO Brian Moynihan, who also appeared on “Face the Nation,” was more upbeat about the outlook.
Moynihan said the bank’s internal data suggest consumer spending has” leveled off” in recent days and is starting to grow in certain areas after plunging in March and earlier this month.
“That actually provides some hope that, as the economy opens up in pieces and safely, you’ll see that consumer spending continue to grow which will help fuel the U.S. economy,” Moynihan said.
This is a result of the government’s stimulus programs, he said.