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The Federal Reserve’s programs have been successful so far, St. Louis Federal Reserve President James Bullard told CNBC on Wednesday.

Bullard further argued that the main economic impact of coronavirus-related shutdowns will be observed in the second quarter. “April jobs report will be one of the worst on record,” Bullard added. “The unemployment rate could hit 20% or go even higher.”

Market reaction

Although the US stock index futures erased a portion of its earlier gains during Bullard’s interview, investors seem to be reacting to the ADP Employment Change data, which plunged to -20.2 million in April. As of writing, the S&P 500 futures were still up 0.4% on the day.