On Wednesday, President Donald Trump predicted the U.S. economy "will boom, perhaps like never before" as soon as the coronavirus pandemic ends. But while economists agree there's nowhere to go but up, they say it will likely take a while before that happens.
"Anyone who assumes we’re going to get a sharp snapback in activity isn’t thinking about how consumers are going to feel," says IHS Markit economist Nariman Behravesh. "They’re going to be very cautious. Households and businesses have seen their finances deteriorate. People are buying groceries on their credit cards."
As an example, Behravesh points to the 2001 terrorist attacks. Much like people have become frightened of spending too much cash, people back then were afraid to fly, he says. "It took two and a half years for airline passenger traffic to go back to previous levels," he says.