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Previewing Friday’s jobs report, Minneapolis Fed President Neel Kashkari argued that the true unemployment rate is around 23-24% but the Nonfarm Payrolls report is likely to show a smaller number because many people are not looking for work.

“We can avoid a depression scenario but we’re in for a long gradual recovery,” Kashkari added and noted that he is very concerned about more cases flaring up if the economy opens too quickly. “The recovery will be gradual on a business-by-business basis until we have a COVID-19 vaccine or therapy.”

Market reaction

These comments don’t seem to be having a significant impact on market sentiment. As of writing, the S&P 500 futures were up 1.35% on a daily basis.