David A. Grogan | CNBC
Veteran Wall Street trader Art Cashin told CNBC the Federal Reserve’s big announcement Thursday is propelling stocks higher, but he warned a full recovery from the coronavirus-driven sell-off will take some time.
“For now, the Fed coming in open-ended has given the market a breath of fresh air,” Cashin said on “Squawk Alley.” “We traders coming in this morning had … thought the market might begin flattening out here.”
“But we got a second breath from the Fed,” he added.
Before the stock market opened, the Federal unveiled details of its much-anticipated Main Street lending program and other initiatives, a total of $2.3 trillion in loans to help businesses and municipalities.
Blue chips appear poised to post their best weekly gains since 1938.
Cashin said he does not expect a so-called V-shaped — quick down, quick up — recovery on Wall Street. He sees a longer time spent at lower levels in the form of a U-shaped or even an L-shaped trajectory.
His last appearance on CNBC was on the morning on Feb. 13. He was in a car accident that evening. He fractured his hip, and he has been undergoing rehab.
At the time, Cashin advised investors to watch declines in freight shipments as a sign of possible economic contraction. He had correctly said that further spread of the virus could eventually become “a problem” for the markets and economy.