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Minneapolis Fed president explains why economists likely overshot on April jobs report

Minneapolis Federal Reserve President Neel Kashkari doesn't think people should "overreact" to the disappointing April jobs report, but he acknowledged the "bottom line" is that "we are still somewhere between 8 and 10 million jobs below where we were before" the coronavirus pandemic struck. "We still are in a deep hole," he told CBS News' John Dickerson on Sunday's edition of Face the Nation. "And we still need to do everything we can to put those folks back to work more quickly."

So how did economists' predictions miss by so much? Kashkari explained that the pandemic "is unlike any other shock in our lifetimes" because the economic recovery relies so heavily on individuals' assessments of personal safety. "It's very hard to model that out," Kashkari said, noting that people have spent so much time "conditioning" themselves to take precautions. Now, though, "we have to start to change what we've been telling people," he said, agreeing with an earlier point from former Food and Drug Administration Commissioner Scott Gottlieb. "People feeling safe about the virus" will ultimately drive the economic recovery, Kashkari said. Tim O'Donnell