The US economy is facing a huge shock to the system in the near future, and then it will report a strong rebound, according to James Bullard, who is the chief executive officer and 12th president of the Federal Reserve Bank of St Louis.

Earlier this week, the central banker predicted that the unemployment rate would rise to 30%, reaching levels higher than the time of the Great Depression. However, he said that although the blow would be large, it was a product of anti-virus measures and would pass quickly.

“The damage will be incomparable, but don’t be discouraged. Once the virus is gone and if we play our cards properly and keep everything under control, everyone will be back to work and everything will be fine”, said James Bullard.

James Bullard and his colleagues have taken extraordinary steps during the crisis, reducing short-term borrowing rates to zero, implementing a number of programs aimed at maintaining the functioning of markets and channeling funding to needy businesses and institutions.

With respect to the fiscal stimulus package, Bullard said the 2 trillion USD is approximately correct given the impact of the blockade on much of US trade activity on manufacturing. Increasingly, local authorities are advising residents to stay home, which is a blow to the heart of the US-leaning consumer economy.

Expecting the package to be introduced soon, James Bullard said the focus should now be on maximizing the benefits of the program for employees and companies as soon as possible. According to him, the economic impact should be contained within the second quarter of the year from April to June.

“It all depends on the virus, but the third quarter would be some kind of transition where we can take a bigger economic opening. Maybe the test results will be better, other factors will be better and then at some point we can let’s just say it’s behind us”, said James Bullard.

In a television interview Thursday, Fed Governor Jerome Powell said that when it comes to lending, the Fed will not run out of ammunition. “We still have room for action in other dimensions to support the economy”, he said.