What the surge in jobless claims means for the economy: Former Fed Gov. Tarullo

Daniel Tarullo, former Federal Reserve governor and currently a professor at Harvard Law School, joins "Squawk Box" by phone to discuss the latest jobless claims data as well as how he sees the market and economy potentially recovering after the coronavirus pandemic.

The torrent of Americans filing for unemployment insurance skyrocketed last week as more than 6.6 million new claims were filed, the Labor Department reported Thursday. That brings to 10 million the total Americans who filed over the past two weeks.

Economists surveyed by Dow Jones had expected 3.1 million for last week, one week after 3.3 million filings in the first wave of what has been a record-shattering swelling of the jobless ranks. The previous week’s total was revised higher by 24,000.

Stock market futures gave up most of their previous gains in the morning but still pointed to a slightly higher open on Wall Street.

Get the market reaction here.

On an unadjusted basis, the total was 5.8 million, a number that some economists consider more relevant because seasonal adjustments are less relevant due to the unusual impact the coronavirus-induced shutdown has had on the economy.

“Sadly, this probably still underestimates the actual numbers because of the overload in the systems and not every call getting through,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “Even if we’re accurately calculating the numbers, we still likely have worse to come.”

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