ZANDI: USA risking second virus wave and a depression… Fed’s Kashkari says worst is yet to come

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It may be the economy’s make or break moment.

Mark Zandi of Moody’s Analytics is getting increasingly worried states are taking a large gamble by reopening businesses too quickly.

He warns a spark in new coronavirus infections would send the economy further into tailspin — especially since there’s no vaccine.

“If we get a second wave, it will be a depression,” the firm’s chief economist told CNBC’s “Trading Nation” on Friday. “We may not shut down again, but certainly it will scare people and spook people and weigh on the economy.”

Zandi defines a depression as 12 months or more of double digit unemployment.

On Friday, the Labor Department reported the April jobless rate soared to 14.7%, and non-farm payrolls tumbled by 20.5 million. Both sets of employment data are post-World War II records.

 

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